435-441 Kent Street, Sydney, NSW

Client
Carla Zampatti.

Property Type
A 4 level heritage warehouse office building constructed in 1901 and refurbished in 2007. Tenancies comprised three whole floors of 1,042m²* and suites of 206m²* and 400m²*.

Background
Carla Zampatti, a leading Australian fashion icon purchased the buildings in 1978 (435 Kent) and 1980 (441 Kent). In 2006 the building underwent a full refurbishment opening up the tenancies into whole floors of 1040m²* with exposed ceilings, iron bark columns and polished floors.

Marketing Strategy
With large open plan floor plates and fit out restrictions due to the heritage guidelines we knew the target tenant would only be open plan creative users. We compiled an industry target list including Architects, Media, Design, IT, Publishing, Art and Software Companies. The combination of web marketing and direct marketing yielded excellent results with a healthy supply of tenants to negotiate with. From our competition analysis we noted there were no similar Sydney CBD offices with warehouse floors of 1,000m²*, therefore we were firm on commercial terms.

We used the competitive tension between tenants to enhance value to the Lessor by keeping face rents high, incentives low, and focussed on strongest tenant covenants and longest lease terms.

All incentives were applied as an amortised rental rebate with some tenant’s spending over $1,000 psm on tenancy fit outs.

Lease Process
Ray White were appointed as exclusive leasing Agents to coordinate the project. 100% fees were offered to outside Agent to introduce and tenants they wished to show.

Of the 5 tenancies leased 3 were conducted by Ray White and 2 via outside Agents. The building has maintained a 100% occupancy rate since 2008, and is still know and Carla Zampatti House.

Lease Analysis* Initial 5 transactions

*approx