Case Study
Major reduction in business property costs by relocating from Sydney CBD to Alexandria.
Outcomes
New international HQ for the Koala brand
Over $1.8 million per annum savings from relocating staff from Sydney CBD, and successfully subleasing excess space in new lease
3,160sqm of mixed office-warehouse space on a prime, centrally located industrial estate
Successful negotiation with existing landlord: renewed existing area lease, plus secured additional space
Comprehensive site search of South East & Inner West Sydney
Competitive incentive
Additional 1,118sqm space successfully subleased to another eCommerce business
3,160sqm, Office/Warehouse
Sydney, Australia
Tenant Leasing Group signed an agreement to renew an existing lease and lease additional space at 37-41 O’Riordan Street, Alexandria, in Sydney, on behalf of our client Koala Mattresses & Furniture.
Koala is an international, purpose-driven homeware business, and one of Australia’s fastest growing companies. Tenant Leasing Group are proud to have been able to work with the Koala team on a property brief and secure this lease, which meets their current and future needs.
The mixed-use office/warehouse (approximately 70:30) site is part of the prestigious “City Close Industrial Estate”. The estate pays host to high-profile brands including Mercedes Benz, Liquor Emporium, and Steve Madden. It is located in the heart of Alexandria: a 700m walk to Green Square train station, and 3km to Sydney Airport and the CBD. The estate also offers secure basement parking for staff, as well as customer parking. Koala use the site for product development and head office functions (the location will double as their international headquarters).
To get this site, we went to market in South East and Inner West Sydney suburbs, and looked at a large number of properties. After refining our short-list, we ended up negotiating with Koala’s existing landlord at the site to renew the lease for the existing area, plus provide additional space to cater to Koala’s growth. Our successful negotiation’s got our client a competitive incentive in a deal that worked out well for both parties.
Koala currently occupy units 11 and 12, and the additional 1,118sqm of space secured with the new lease was ready for occupation mid-2022, and successfully subleased.
Having already expanded internationally to Korea and Japan, Koala’s latest property move – and the > $1.8 million p.a savings it’s created – will enable further business growth for the successful eCommerce start-up. We’re looking forward to a strong partnership.
