Quintessential Equity is offering prospective tenants a year’s free rent at a prime CBD office building in Perth.
The eight-level building, located at 8 St Georges Terrace in Perth’s CBD, has undergone a $5 million refurbishment, which was carried out by Quintessential Equity over the last year.
Under the deal, Quintessential Equity is offering new tenants a one year rent-free lease in addition to a fully paid-for, bespoke office fit-out. After a year, tenants will then have the option to sign a four-year lease.
The building comprises 4,382 square metres of net lettable area, catering to tenants looking for 200 to 600 square metres of office space. It is currently 86 per cent vacant.
Quintessential Equity’s General Manager of Asset Management, Noah Warren, says that the opportunity is rare and could help to save businesses 5 to 20 per cent of their overhead costs during the first year of the lease.
“While this is a significant capital commitment from our end, the way we see it is if we’re able to support businesses through this financially challenging time brought on by COVID-19, then we will. In return, we hope to build trust by providing an exceptional experience that will lead to a long term relationship with our tenants.
“We are seeing so many businesses that are in need of support and will look at ways to reduce costs. We want to support the business community and it’s times like these where strong relationships are built. This offers new tenants flexibility and it is something we are proud to provide,” says Warren.
Depending on the office size, a year’s free rent could save a business from $80,000 to $240,000 per year. Businesses could also save from $150,000 to $450,000 on a bespoke fit- out.
With a focus on tenant wellbeing, the refurbishment includes a new ground floor and on-floor lobbies, free of charge conference centre, end-of-trip facilities, new lifts as well as upgrades to the overall design and functionality throughout. The amenities and finishes are now of an A-grade to premium standard.
Final mechanical regeneration works are due for completion soon which are aimed at bringing the building’s NABERS base building Energy rating to a minimum 4.5 Stars, while also reducing running costs. Upgrades were also made to all bathroom areas, including modern fixtures and water and electricity saving facilities.
“From a landlord’s point of view, if you can make a building run efficiently, reliably and comfortably, then you’re going to attract and retain tenants. Added to that, we’re offering a very flexible financial arrangement which allows our tenants to focus on their own business during these challenging times,” adds Warren.
Quintessential Equity has a tenant retention rate of 95 per cent over a 10-year period.
JLL and CBRE have been appointed to handle the leasing enquiries.
Perth’s rental market saw vacancy rates sit at around 19.5 per cent at the end of Q1 which is expected to remain over the next year, according to JLL research.
“This opportunity offers ultimate flexibility for a tenant looking for high quality CBD space on the terrace. There’s not another deal on the market quite like this,” says Ross Skelton, director of office leasing at JLL.
Quintessential Equity purchased the fully vacant building for $9.25 million in 2018, as part of its first Master Fund – a move that allowed the property group to buy into Perth at the lower end of the market.
VISIT 8 ST GEORGES TERRACE, PERTH HERE.
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ABOUT QUINTESSENTIAL EQUITY
Quintessential Equity is a diversified commercial property group that provides wholesale
investors with sound, risk-mitigated, syndicated property opportunities. The company
focuses on commercial office and industrial investment and development.