Savills Corporate Real Estate Services Division has successfully represented Sydney Ports Authority (SPA) to negotiate a leading edge deal at the recently completed Bond One building owned by Dexus at 20 Windmill Street, Wash Bay.

The lease is for 10 years with 5 year option commencing 1 July 2009. SPA will occupy about 3,205 sqm over levels 4, 5 and 7. Rental rates and incentive levels are confidential however well represented tenants can receive incentives in excess of 25% being achieved.

Sydney Ports are moving out of their premises in Kent Street, which has been their headquarters for more than 10 years.

This follows on the heals of Savills Corporate Real Estate Services representing M & C Saatchi to negotiate a new lease over approximately 3,000 sqm at Transport House, 99 Macquarie Street, Sydney. 

Again the full commercial terms are confidential but the tenant is paying no more rent than in its old premises, the move was cost neutral, and they also received a new fitout at no cost. The lease is for a period of 12 years with a 3 year option commencing 1 June 2009. 

Mackenzie believes that these deals highlight the value of tenants being well represented by qualified corporate real estate executives.

“It also and demonstrates that large deals still are being done in the market place where the lessor’s expectations can align with the tenants requirements.

“The skill in the negotiation is in to bring these together and have both parties comfortable the final commercial terms agreed.” He says

Savills rejects the notion that the current economic climate is bad news for CBD tenants. On the contrary this market is creating outstanding opportunities for tenants looking to relocate or to stay in existing premises and restructure their current leases.

The key is to get good quality advice from an experienced and well qualified advisor not one who has been in the market 5 minutes.

With landlords under stress, vacancy rates rising and large volumes of sublease space coming on line the market has never been better for a tenant.

Mackenzie’s advice to tenants is “engage a qualified consultant with strong negotiating skills and quality research back up, who think outside the box.”