Salesforce.com – Sydney Headquarters – Tenant Representation
The brief for Salesforce.com’s Australian Headquarters proved challenging with the Sydney CBD market for premium quality office space tightening and Salesforce initially wishing to expand in a building which was dominated by two major growing occupiers. Further the clients rapid business expansion meant that the requirement tripled in size from the current space occupied to the time a new deal was negotiated. This rapid growth was difficult to house in all Sydney CBD options. Landlords were not prepared to lock up extra growth space in a market with reasonable demand and growing rental rates.
The initial step was to ensure the amount of space was as close as possible to the future headcount projections. By going to market several alternative premises were located however there was an underlying desire to remain in situ.
The next determine how this space could be secured in the existing building. Through subtle negotiations the building management office was relocated, and growth rights over space for the two dominant tenants in the building were slowly restricted. The amount of space required for the future was in sight.
A competing building was found and negotiated as a backup position. Any move to new premises made sense with right expansion options and to carry out the fitout works would have been easier in the new premises – avoiding reconfiguration works in the existing premises.
A fresh 5+5 year lease was entered into for space over two contiguous floorplates in the current building to cater for the growth and current requirements of the business with very favorable option terms and the fitout cost was reduced significantly.