One of Australasia’s largest flexible workspace providers The Executive Centre (TEC) have secured space at AMP Capital’s Collins Place in Melbourne and Sydney’s Angel Place, reflecting improved demand for A-grade flexible workspace.
TEC will lease 1,682 square metres on L30 at 35 Collins Street in the iconic Collins Place on a ten-year term.
In Angel Place - nestled between the retail core and professional and financial services district of Circular Quay at 123 Pitt Street - TEC will take 1,655 square metres of space on a ten-year term on L17.
TEC will complete a new fit-out in both tenancies including expansive café and breakout zones, private office suites, co-working lounges, meeting rooms, and event spaces.
Commenting on the transactions, AMP Capital Director of Leasing Christina Malcolm said the leases were a fillip for AMP Capital with TEC looking for a flight to quality and well-located flexible space in Sydney and Melbourne.
In Sydney's Angel Place, TEC will take 1,655 square metres of space on a ten-year term.
“We’ve seen increases in enquiry across Sydney and Melbourne, and while transactions in the first quarter were subdued following a robust fourth quarter in 2021, we are seeing an increase in appetite for well positioned commercial floorspace, particularly in Melbourne’s eastern corridor.”
Commenting on the leases, The Executive Centre Country Director – Australia, Robert How said, “Bringing Premium Flexible Workspace to the landmark Angel Place and Collins Place means clients benefit from state-of-the-art amenities, customer-centric delivery, and prime locations of the two buildings.”
“As the post-pandemic recovery continues, we are experiencing increased demand for our flexible workspace solutions from businesses that adopt an agile and responsive workspace strategy.”
Demand for flexible space solutions is forecast to accelerate in coming years, supporting employers who are encouraging their staff to return to the office by allowing them to manage their space requirements more efficiently
According to a JLL office occupier survey on the amenities that have the highest impact on performance, respondents said that breakout spaces, co working, wellness and lounges/cafes were the most critical to performance. These amenities were however the scarcest, and that gap will need to be bridged.
Incorporating flexible space into an office building is now a ‘must have’, in the landlord toolkit to ensure occupier customers have a full suite of experience and productivity amenity to support their operations.
Source JLL Research
About AMP Capital Real Estate
AMP Capital is one of the largest direct real estate fund managers in the Asia-Pacific[1] with more than $23 billion[2] in assets under management on behalf of institutional and retail investors across the globe. We are also one of the most experienced, with our heritage in real estate investment, management and development spanning over 60 years and many investment cycles, starting with Australia's first skyscraper which opened in 1962. AMP Capital's extensive global network and integrated management model allows its multidisciplinary team of real estate professionals to realise true value for clients through the investment management, property management and development of a portfolio of some of the most iconic shopping centres, office buildings and industrial estates across Australia and New Zealand. AMP Capital Real Estate has recently been recognised as a leader in sustainability with a number of our real estate funds being awarded five-star ratings with global ESG benchmark for Real Assets – GRESB, which places them in the top 20% of funds globally.
In April 2022, AMP Limited announced that the AMP Capital/Collimate Capital real estate and domestic infrastructure equity business would be sold to Dexus Funds Management Ltd (Dexus), a leading Australian real estate and asset management group.
[1] Source: ANREV/INREV/NCREIF Fund Manager Survey 2021
[2] As at 30 June 2021. This includes AMP Capital’s 24.9 per cent share of PCCP’s NAV, equivalent to A$1.8b
