Naming rights, leasing opportunities emerge at media company’s new HQ

In what is likely to be one of the biggest office leases of 2015, half the available space in Manson TCLM’s new 20,000sq m building at 151 Victoria St West in Auckland’s CBD has already been taken ahead of its completion.

Media company NZME (formerly APN NZ) has taken a 15-year lease over 8300sq m of space on levels 1-3, with a six-year right of renewal, and will also take half of the building’s 169 basement car parks. 

Bayleys Auckland senior sales and leasing consultant Paul Hain, who advised Mansons on the transaction, says it is the biggest lease concluded in Auckland since Fonterra committed to its new head office premises in Fanshawe St.

He says the building’s large floor areas of 3100sq m per level, with interlinking staircases, were a major attraction for NZME – enabling it to merge all its media operations into one compact business environment. 

The New Zealand Herald will be relocating into the building, starting in November, followed by The Radio Network and NZME’s digital operations, including the daily deal website Grab One.

Mr Hain says approximately 1000sq m on the ground floor will also be occupied by retail tenancies, leaving only the top three floors, encompassing a net lettable area of 9300sq m, available for lease.

Because of the site’s elevated position, the floors have expansive city and harbour views and also come with naming rights.

“There has been strong enquiry in this space which has heightened now that the building is fully glazed and nearing completion, giving prospective tenants a clear picture of what an impressive structure it is,” he says. “Construction is well ahead of schedule and floors will be available for fitout from June.”

A particularly striking feature of the property is the giant 20 metre high lobby atrium which runs through the building, flooding it with natural light and providing a spectacular meeting place for tenants and visitors. The lobby also connects with a substantial and extensively landscaped public plaza area.

Each floor has an internal sky bridge through the atrium and the 2000sq m of tenancy space on one side of this atrium also has its own smaller atrium to enhance natural light exposure.

A floor to ceiling stud height of 3.1 metres, compared with 2.7 metres in a typical office floor, plus the glass curtain exterior facade will increase light penetration into the building as well, Mr Hain says.

“In addition, the building has been designed to a 5 Green star rating, which means it will offer significant energy savings for tenants as well as a healthy environment for staff to work in.

“Research is beginning to quantify the occupational benefits and enhanced returns of sustainable and healthy buildings which are driving demand for such assets from both tenants and investors.” 

Each floor can accommodate upward of 300 people but the building also offers options for smaller tenants as it has been designed in two parts which enables each floor to be split into two tenancies of 2000sq m and 1100sq m.

The building is Mansons TCLM’s second-biggest development after the Telecom campus, located directly across the road, and is the largest project the company has undertaken on a speculative basis without tenant pre-commitment.

Mansons TCLM director Culum Manson says 151 Victoria Street has been designed in response to feedback from prospective tenants about the type of accommodation they are wanting. 

“It’s all about efficiency, both in space use and running costs. Companies like having staff located on fewer, larger floors because it results in a more collegial and productive working environment. Bigger floor areas also mean less wasted space, which also reduces operating expenses,” he says.

“High-quality and healthy building services, such as increased fresh air delivery in air conditioning systems and high levels of natural light penetration to working and amenity areas are also important and that’s what we focus on providing with our buildings.”

Mansons TCLM has been the most active developer of new office buildings in Auckland in recent years, with all of its projects self-funded. 

“We foresaw an impending shortage of efficient green-star rated buildings capable of accommodating large tenants and were sufficiently confident of demand for this type of space to be comfortable about undertaking developments without substantial precommitment from tenants,” Mr Manson says.

Other recent central Auckland projects have included the Watercare Services building at 73 Remuera Rd, Newmarket, the GHD Building at 27 Napier St, alongside the Southern Motorway, and Oracle House at nearby 162 Victoria St West.

Neil Prentice writes for Bayleys Real Estate