Automotive Financial Services
April 13, 2020
11 May 2022
Privately-owned 26 Wharf St is stoked to have found a new occupier for its premiere floor in Ok Tedi Mining Limited. Having seen the old fit out occupied by the previous tenant, Caden knew exactly what was needed for the space.
In a market dominated by fitted offices it was clear as soon as it became available that Level 11 at 26 Wharf St would need its old fit out stripped and a new fit out delivered. With over 80% of leases happening in fitted tenancies it would be easy for building owners to get complacent and assume that they could built just about whatever and find a tenant, however, clever landlords are recognising the underlying opportunity to reposition their buildings and find additional value through delivering excellent fitted product.
At 26 Wharf St, Level 11 represented the building’s best opportunity to push its face rents and reset market expectations for the quality of tenancy that could be delivered within the building. Knowing that prospective tenants would need to see the uplift in quality to justify the rise in rent, the owners of 26 Wharf St extended their fit out expenditure significantly, ultimately spending over $1,000/sqm on a series of high quality finishes and feature components to give the space a notable sheen.
This additional spend on fit out was somewhat necessitated by a “risky” layout choice driven by Caden that saw the floor’s kitchen and breakout facility actually become a front-of-house thoroughfare for visitors coming into the boardroom. As such, finishes in this part of the tenancy were hand-picked with the view that this area had to pop and create an engaging and tidy experience for anyone coming to the floor.
Caden’s Angus Smith had this to say, “we knew it was time to mix it up with the design of our spec fit outs. We’d done near identical designs for the two previous specs, levels 7 and 9, and got the results we wanted, but we needed to prove to ourselves and to the wider market that 26 Wharf St isn’t a one-trick pony, and level 11 was the perfect opportunity to do that. This design we came up with in tandem with Archway Commercial Interiors was different to the norm which turned some people off immediately, but also became a powerful point of difference in that tenants weren’t able to find it anywhere else.”
Ultimately this calculated risk paid off handsomely with the penthouse floor being snapped up within a month of completion, a strong result by any measure of a spec fit out. Having had their eye on the tenancy prior to completion, suburban-based Ok Tedi Mining were keen to see their future project office once finalised and didn’t muck about in securing the space. Another testament to the quality of the fit out and the fact this was the top floor, 26 Wharf St was able to realise a new high with its rent, achieving a strong $625/sqm.
For more information on this deal or for any general enquiries, please don’t hesitate to contact Angus Smith on 0402 954 264 or email at Angus.smith@caden.com.au.