Lendlease Nabs Salesforce for 50pc of Circular Quay Skyscraper

Sydney’s tallest building will be dubbed the “Salesforce Tower Sydney” after its newly-announced anchor tenant, with the US software giant taking up nearly 50 per cent of the Circular Quay skyscraper.

The US$130 billion tech behemoth, which pioneered cloud-based customer management software, has secured the naming rights to the $1.5 billion tower as it expands its presence in Australia.

Salesforce will occupy 24 levels in the 53-storey tower on the former Jacksons on George site, with its 1,000-plus strong workforce set to move in to the tower by late 2022.

The Foster and Partners-designed tower forms part of the broader renewal at Circular Quay, which Lendlease is developing in partnership with China’s Ping An Real Estate and Japan’s Mitsubishi Estate Asia.

Ping An is the majority partner, contributing 50 per cent toward the development of the Circular Quay hub, with Mitsubishi and Lendlease making up the remaining 30 per cent and 20 per cent respectively.

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While Salesforce has not responded to enquiries about the details of the deal by the time of publishing, a sub-4 per cent vacancy rate in Sydney’s CBD has pushed the prime net face rent rate well above the $1,000 per square metre mark.

Earlier this year, Deloitte struck a 10-year lease for 32,000sq m metres at AMP’s neighbouring Quay Quarter Tower for around $1,400 per square metre.

The Circular Quay precinct will soon welcome the Sydney light rail, with other major office projects nearby including Mirvac’s $1.5 billion 55 Pitt Street and Poly’s namesake commercial tower at 220 George.

Lendlease property chief executive Kylie Rampa said that the developer worked closely with Salesforce on its new workplace.

Salesforce, which is listed on the New York Stock Exchange under the ticker CRM, said it will convert the top floor of the tower into a shared hospitality space for its employees and customers.

The tower is one of ten towers the company has its name on worldwide, including its headquarters in San Francisco’s tallest tower—a 61-storey skyscraper designed by architect César Pelli.

As part of its Australian expansion, the company said it will add 1,000 new jobs in Sydney over the next five years.