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The week in corporate real estate - 1 July 2021

The week in corporate real estate  1 July 2021

A weekly update of the biggest corporate real estate news from New Zealand and around the globe.

New Zealand corporate real estate news  

  • Northland Regional Council sells Kensington Crossing: Northland Regional Council has sold Kensington Crossing. They purchased the site 5 years ago and spent $15.5M redeveloping it into a community centre comprising a medical centre, food outlets, a gym, and a dentist. The money from the sale will be used to fund more redevelopments.  
  • Aurecon to anchor One10 Carlton Gore Road, Newmarket: Aurecon will be the anchor tenant for the new $250M office block called One10 Carlton Gore Road in Newmarket. The property is being developed by Mansons TCLM. Aurecon has agreed a 12-year lease for level three, half of level two and a ground floor reception space. The lease also includes naming rights, 32 car parks and access to co-working space.  
  • Luxury retail brands to open in Newmarket: Scentre Group has announced several luxury retail brands will be opening in the Westfield Newmarket shopping mall from August. The retail brands are Louis Vuitton, Saint Laurent, Alexander McQueen, Balenciaga, Moncler, Burberry, Jimmy Choo, and Michael Kors. 
  • Victoria University of Wellington takes over management of two student halls: Victoria University of Wellington announced they will be taking over management of the Te Puni Village and Everton Hall in Wellington. The contract with the existing manager, Campus Living Villages, ends in January 2022. 
  • Precinct Properties acquires Bowen House: Precinct Properties has agreed to buy Bowen House in Wellington for $92M. They intend to invest $57M in redeveloping and strengthening the building. The building will be occupied by Parliamentary Services on a 15-year lease after completion in 2023. They also have a conditional agreement to purchase the Freyberg Building. Precinct Properties is seeking $250M from investors to fund the purchase and redevelopment. 
  • Countdown opens their greenest store: Countdown has opened their new store in Richmond. This will be their first store targeting a Green Star rating. The 3,450 sqm store will reduce energy and paper usage using a variety of methods including LED lighting, solar panels, electric vehicle charging points, an electric truck for online order deliveries, doors on fridges and freezers, water-saving taps and digital shelf labels. Countdown also achieved a reduction in construction waste by 83% during construction. 
  • Warehouse Stationery to close in Invercargill: The Warehouse Group has announced a proposal to close the Invercargill Warehouse Stationary store on lease expiry in October and incorporate it within the Warehouse store to create a store-within-a-store concept. The proposal aims to reduce costs and may be rolled out at other sites over time. 

Global corporate real estate news  

  • Uber updates work from home policy: Uber has changed their work from home policy. Uber had previously announced that employees will need to work in the office at least 3 days per week. The new announcement is that employees can apply for full remote work or choose a different office to work from, with employees expected to spend at least 50% of their time in the office. 
  • UBS announces hybrid work model: UBS has announced two-thirds of its employees will have the opportunity to work from home for part of the week once they return to the office. The remaining third of employees will continue to work on-site, typically being branch and trader employees. Employees in New Zealand, Australia, China, Hong Kong, and Taiwan can now apply for the hybrid work model. 
  • ITV leases new London headquarters: ITV announced they will be moving their London employees to a new headquarters at the BBC Broadcast Centre. ITV has signed a 13 year lease for 11,148 sqm of office space which will accommodate 2,000 employees. The company is adopting a hybrid working style balancing office-based and remote working alongside the move. ITV’s staff are currently split between three offices.  
  • Amazon expands in Redmond USA: Amazon has announced the lease of 12,727 sqm of mixed-use office space in Redmond USA. The space will be completed in 2022. The space will accommodate more than 800 new jobs including software developers, UX designers and technical program managers. Amazon is also planning to lease 2,043 sqm of lab space in Redmond to focus on research and development relating to its Project Kuiper.  
  • Amazon converts part of headquarters into temporary cooling centre: Amazon has converted part of its Amazon Meeting Centre headquarters in Seattle to a cooling centre to help the public deal with the current heatwave. The space has been set up for 1,000 individuals.  
  • Radisson Hotel Group Americas relocates USA headquarters: Radisson Hotel Group Americas has announced the relocation of their USA headquarters to St Louis Park in Minneapolis effective January 2022. Radisson has signed a long-term lease for 3,344 sqm of office space which will accommodate their hybrid working model. Amenities in the building include collaborative lobby workspaces, high tech conference spaces, bike and fitness facilities and a tenant sky deck. 
  • PGA headquarters is complete: PGA’s headquarters designed by Foster + Partners has been completed at Sawgrass golf course in Florida, USA. The three-level 17,000 sqm office building includes flexible workspaces, café, gym, and large outdoor terraces which connect the outdoor and interior spaces.

Contact property consultant Chris Farhi at Colliers Strategic Advisory to request an email notification for this weekly update.


Related Experts

Renee Lintott

Strategic Analyst

Auckland

Renee was the recipient of the Blair Hargrave/Colliers  Scholarship in 2019 before joining the  Strategic Advisory team as an analyst in the same year. Renee worked part time in the team for 2 years whilst completing  her tertiary qualifications and joined full time in mid 2021. 

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