Case Study
Sub-lease of 1,118sqm in Alexandria warehouse
Sub-tenant secured for our client's mixed-use site, reducing their rent liability.
Outcomes
- Successful sub-lease of excess 1,118sqm space in Sydney’s Inner South for our eCommerce client, Koala
- Tenant Leasing Group (TLG) was coordinating agent and managed the negotiation to find a sub-tenant. TLG was supported by Savills and Colliers
- Attracted a quality lessee – Sweedish electric automotive innovator, Polestar
- Comes off the back of securing the 3,160sqm mixed office-warehouse site for Koala’s HQ relocation. In total our efforts have helped them save $1.8 million p.a
1,118sqm | Warehouse/Office
Sydney, Australia
Off the back of a negotiated agreement to renew an existing lease and lease additional space at 37-41 O’Riordan Street, Alexandria, Sydney, for our client Koala.
We launched a search campaign with a specialist commercial agent, and managed the sub-lease negotiation and transaction for the excess 1,118sqm of space at the mixed-use warehouse/office site in the Inner South.
We were able to attract a high-value lessee – Sweedish electric automotive brand Polestar.
The sub-lease is part of a mixed-use office/warehouse (approximately 70:30) site in the prestigious “City Close Industrial Estate”.
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).
Taking into account the initial >3,000sqm lease, this successful sub-lease has helped Koala save approximately $1.8 million p.a.
Koala is a leading eCommerce furniture & homewares retailer.
TLG has 50 years’ experience finding & negotiating leases for businesses with office and industrial property requirements, like Koala.
Are you ready to get money back from excess commercial space you are not using? Are you looking to move to a larger warehouse, change office location, or expand your retail operation? Speak to a commercial tenant advisor.
Phil Reichelt
Founder & Principal, Tenant Leasing Group (TLG)
Phil Reichelt is a property advisor & tenant representative with 25+ years experience in Australia and New Zealand.
He specialises in multi-site retail, mixed-use office & industrial, and warehouse leases of up to 5,000sqm.
Phil negotiates competitive rentals, incentives, and favourable lease terms. He acts for retailers, eCommerce, financial services, legal firms, and other businesses with property needs.