The Project

Subleasing 15,500sqm of A-Grade office space at 655 Collins Street, Melbourne from 1 February 2023 to Head-Lease expiry of 31 December 2029.

The Challenge

Cost recovery exercise in a market with over 120,000 sqm of subleasing availability and overall vacancy levels exceeding 15% of available stock. Creating an effective leasing and marketing strategy that clearly defines the value proposition of a building offered to market for the first time without the resources of competing institutional landlords.

The Outcome

Ongoing. As at time of writing, 655 Collins Street has been shortlisted on over 30,000 sqm of enquiry and executed 5,000 sqm of transactions in the most challenging market conditions.

Scope of Appointment

Project Leasing Consulting reporting to Deputy CFO. Responsible for creating and executing a subleasing strategy inclusive of following key deliverables:

• Chair regular project briefing meetings with Nine CEO, CFO & Deputy CFO
• Detailed market and premises analysis including overview of current and forecast leasing data, competing stock, and SWOT analysis
• Provide detailed financial scenario analysis demonstrating outcomes for a full building lease vs floor by floor transactions
• Engage with Head-Lessor on feasibility and process for creating opportunity of a full lease surrender and hand back of premises
• Run market EOI and appoint leading agency to act as primary leasing team
• Appoint strategic marketing agency to reposition building brand, online and physical marketing collateral and market engagement strategy
• Determine essential opex and capex scope of works to appropriately position building for lease inclusive of appropriate sources of funding
• Proactively seek and negotiate direct and indirect leasing opportunities
• Provide key financial analysis and insights into each recommended leasing proposal received by appointed agency