Co-working occupancies coming back to life after brutal year

Original article by Martin Kelly
The Australian Financial Review – Page: 31 & 32 : 17-Feb-21

Hub Australia CEO Brad Krauskopf says the average occupancy rate across his company’s eight co-working sites is currently around 70 per cent. This remains well below the pre-coronavirus average of more than 90 per cent, but Krauskopf notes that there has been a 250 per cent increase in enquiries since the start of 2021. The Commons’ MD Cliff Ho says occupancy at its Sydney Central site is almost back to the pre-pandemic level, although occupancy at its four sites in Melbourne is currently at around 70-75 per cent.

CORPORATES
HUB AUSTRALIA PTY LTD, THE COMMONS

Back to work welcome but industry wary

Original article by Joseph Lam
The Australian – Page: 4 : 18-Jan-21

Sydney and Melbourne CBDs are expected to reach around 50 per cent worker capacity in the week beginning 18 January. Industry Group CEO Innes Willox contends the return of workers to cities will help bring about both an economic and emotional revival, while he suggests younger workers are particularly keen to get back to working in the office. However, he says business is wary of how quickly governments can lock down a state, and that the rules are "constantly and quickly changing".

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP

CBA push to get half of staff back in office

Original article by James Frost, James Fernyhough, Tom Burton, Hannah Wootton
The Australian Financial Review – Page: Online : 7-Jan-21

The Commonwealth Bank is hoping to have 50 per cent of its Sydney and Melbourne staff back working in their offices by mid-January. However, with recent COVID-19 outbreaks in both cities, a company spokeswoman noted it is monitoring the situation and will adhere to guidance from the Victorian and New South Wales governments. The Victorian government has delayed by a week its proposed timetable for a return by workers to Melbourne’s CBD, while it has again made it mandatory to wear masks inside, including for office work. A Telstra spokesman says it will encourage its staff to continue to work from home if they can, while Melbourne-headquartered Medibank does not intend to open its office until February.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, MEDIBANK PRIVATE LIMITED – ASX MPL

Towering infernos of cash

Original article by Brad Norington, Ben Wilmot
The Australian – Page: 1 & 4 : 22-May-20

Citigroup has forecast that the value of office buildings in Australia’s major CBDs could fall by more than 15 per cent in the wake of the coronavirus pandemic. Demand for centralised office space is likely to fall if the shift to working from home is sustained once the crisis abates. This in turn could put downward pressure on office rents. Meanwhile, JLL has forecast that the total amount of vacant office space across the nation’s CBDs will rise from 1.46 million square metres prior to the pandemic to about 1.88 million square metres by the end of 2020.

CORPORATES
CITIGROUP PTY LTD, JONES LANG LASALLE AUSTRALIA PTY LTD

WeWork juggernaut runs out of puff

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 32 : 21-Nov-19

Media reports in the US have suggested that co-working pioneer WeWork will retrench 6,000 employees, which is nearly half of its global workforce. Meanwhile, WeWork’s Australian arm is believed to have cancelled deals to lease 20,000sq m of office space in the Sydney CBD and up to 50 per cent of an office building at 100 Queen Street in Melbourne. Sources have also indicated that a proposed deal for WeWork to acquire 401 Collins Street in Melbourne from Impact Investment Group is also unlikely to proceed. It would have been WeWork’s first real estate acquisition in Australia. The company currently has 16 co-working sites in Australia.

CORPORATES
WEWORK, WEWORK AUSTRALIA PTY LTD, IMPACT INVESTMENT GROUP PTY LTD, SOFTBANK CORPORATION, MIRVAC GROUP – ASX MGR, CHINA INVESTMENT CORPORATION, GPT GROUP – ASX GPT

Sydney tightest, Perth weakest in office leasing

Original article by Robert Harley
The Australian Financial Review – Page: 31 : 4-Aug-16

The vacancy rate in Sydney’s CBD office market declined to 5.6 per cent in the first half of 2016. Figures from the Property Council’s half yearly "Office Market Report", to be released on 4 August, also show that Perth is experiencing a very different trend, with the office vacancy rate rising to 21.8 per cent. Nationwide, the CBD vacancy rate rose marginally to 11 per cent.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, JONES LANG LASALLE AUSTRALIA PTY LTD, COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED, CBRE PTY LTD

EY warns of cyber threat to real estate

Original article by Robert Harley
The Australian Financial Review – Page: 40 : 25-Nov-15

Professional services firm EY has released a report which highlights the risks associated with the growing use of digital technologies in buildings. Richard Watson of EY notes that so-called SMART buildings are especially vulnerable to computer hackers. He says a building’s tenants would be the first to be impacted by a cyber attack on the property’s digital infrastructure, but landlords would ultimately have to compensate tenants for loss of revenue and damage to their reputation.

CORPORATES
ERNST AND YOUNG

Presentation has ‘elements of a wake’

Original article by Matthew Cranston, Robert Harley
The Australian Financial Review – Page: 34 : 21-Aug-15

Depressed conditions in the Brisbane and Perth office leasing markets hindered performance of the Investa Office Fund (IOF). IOF leased 55,000 sq m of office space in 124 deals, but like-for-like net property income fell 1.3 per cent. Funds from operations rose 4.5 per cent and, because of strong revaluations, net tangible asset backing rose 8.1 per cent. Mirvac is poised to buy the entire Investa platform.

CORPORATES
INVESTA OFFICE FUND – ASX IOF, INVESTA PROPERTY GROUP, MIRVAC GROUP – ASX MGR, FOLKESTONE MAXIM ASSET MANAGEMENT LIMITED, MORGAN STANLEY REAL ESTATE

Offices go big on smaller tenants, says Colliers

Original article by Nick Lenaghan
The Australian Financial Review – Page: 38 : 18-Aug-15

Businesses are increasingly looking for smaller offices. The proliferation of start-ups and technology firms has led to more demand for office space in tenancies of less than 500 sq m. Colliers International states in its report on Australia’s CBD office market that the proportion of these tenancies has grown to 83 per cent of all tenancies, from 71 per cent in 2009.

CORPORATES
COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED

Demand soars in big cities as mining eases

Original article by Su-Lin Tan
The Australian Financial Review – Page: 44 : 6-Aug-15

Recent data on Australia’s commercial vacancy rates suggest that non-mining sectors are expanding. The Property Council of Australia’s "Office Market Report" for July 2015 shows that Sydney’s vacancy rate fell to 6.3 per cent in July, from 7.4 per cent in January. Sectors that are particularly active in the office market include educational institutions, insurance companies, banks, fintech hubs and government departments.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, TYRO PAYMENTS, COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED, MMJ REAL ESTATE PTY LTD, AUSTRALIAN TECHNICAL AND MANAGEMENT COLLEGE PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF QUEENSLAND LIMITED – ASX BOQ, KNIGHT FRANK AUSTRALIA PTY LTD, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG