Green Leases Lure North Sydney Office Investors

A hotly contested expressions-of-interest campaign for a repositioned A-grade office in North Sydney’s CBD is demonstrating the market’s appetite for environmental performance.

Swiss-based Partners Group, which owns 85 per cent of the commercial tower at 73 Miller Street—ESR Australia owns the 15 per cent balance—are looking to offload the asset.

Following a $62-million redevelopment and repositioning of the commercial tower at 73 Miller Street, a number of international brands moved into the A-grade office asset for its strong ESG credentials and green leases.

JLL head of ESG and repositioning Caitlin Uren said the caveat was landlord-led and obligated both the landlord and tenant to remain accountable for the environmental operation of the building while committing to a 5 Star NABERS Energy rating and the targeted 5 Star Green Star design.

Uren said building owners ESR Australia and Partners Group had led the drive for green leases across the tower, with tenants signing up to ESG benchmarks. It’s a hard-line commitment to sustainable outcomes in the built environment and one she believes will gather pace in the Australian market.

“Landlords have the power (to enforce green leases), and while it’s common in Europe, it’s only just starting here,” Uren said.

“We want to see greater uptake in that corporate responsibility to engage both tenants and owners to be completely committed to ESG.”

▲ Organisations including TTW, Aurecon and Ooh! Media signed up to green leases after the $65-million renovation and repositioning of the 13-storey office tower at 73 Miller Street, North Sydney.

It is one of the newest A-grade office assets in North Sydney CBD and has the second-largest floorplate after 1 Denison, which also completed in 2020.

The repositioning of the office tower has future-proofed the asset, which according to Knight Frank agent Tyler Talbot, has produced a “best-in-class amenity” as well as limiting future capital expenditure requirements. 

Ooh Media chief people and culture officer Steve Reid said the media organisation had moved to 73 Miller Street because it aligned with its sustainability goals. 

“We are really excited to be in a location that we selected for its innovative and sustainability-led upgrades,” Reid said.

“We feel confident about attracting and retaining the best staff to this modern workplace, with views to Sydney Harbour Bridge through floor-to-ceiling glass, modern facilities and a range of sustainable features.”

North Sydney’s CBD is on the cusp of a boom with a number of commercial developments on the horizon, that will reinvigorate the aging inner-city hub. 

Thirdi recently won approval for its Warada on Walker $650-million commercial development, while Lendlease is developing its integrated Victoria Cross over-station project. 

The expressions of interest campaign is due to close on May 4.