46 Market Street, Sydney, NSW

Client
Private Sydney based investor, Coombes.

Property Type
12 Level commercial office building completed 1956, refurbished 2005. Suites range from 60m²* to 250m²*.

Background
In 2001 our client purchased the building from the Commonwealth Bank. The Bank slowly vacated the commercial offices but retained a lease over level 1 and ground floor retail. In 2004/5 an extensive refurbishment programme commenced on the foyer, lifts, services and bathrooms. Levels 2 – 12 were subdivided into suites from 60 – 250m²*.

Marketing Strategy
In 2004 the floors were marketed pre completion with an extensive direct mail marketing campaign as well as web site and e marketing campaigns. As the suites came to completion demonstration fit outs were constructed by the Lessor and furnished as part of lease incentives to tenants. The Lessor’s fit outs were built to a high standard but low cost using the efficiencies of scale by developing an alliance with a dedicated builder to roll out fit outs and furniture throughout the whole building. The central proximity to the QVB being a key landmark attracted international tenants, semi retail tenants, semi medical tenants and well as standard office users.

Lease Process
Ray White has been engaged as exclusive Agents to Coordinate the leasing process since 2004. All Sydney Agents participate in the leasing programme with Ray White managing the marketing, negotiating and transaction process.

The result was 40 suites leased over a 12 month period from completion. Since 2005 Ray White has continued as the Lessor’s exclusive Agent and we have seen strong leasing activity in the building and consistent rental growth in this time.

The consistent income from this asset and mid to long term leases provided the client with good borrowing capacity to develop the adjoining site they owned at 68 York Street which was completed in 2007 at a cost of circa $50 million.

Lease Analysis* Last 6 transactions

*approx