_Space in Sydney CBD’s Merchant House up for lease

• Merchant House, an office redevelopment at 333 Kent Street, is leasing space
• The 15-storey building will provide 14,173 sqm of A-grade net lettable space at a net leasing rate of $1,250/sqm
• Space is being marketed by Knight Frank and JLL
• The building has been designed to appeal to tenants in a post-COVID world, with one floor dedicated to wellness and the provision of a large outdoor terrace area
• The ESG-focused rebuild of the project will see an adaptive reuse of the building’s original structure, resulting in a 60% reduction in its carbon footprint

Sydney, Australia – Space in Merchant House, one of Australia’s most ESG-advanced office rebuilds, is up for lease following the start of construction on the project in Sydney’s CBD.

The $400 million 15-storey commercial redevelopment at 333 Kent Street will provide 14,173sq m of A-grade net lettable space, and is scheduled for completion in mid-2024.

Designed by renowned architectural firms WMK and Woods Bagot, Merchant House adaptively reuses the building’s original structure, built in 1887, including the incorporation of its iconic heritage façade.

The reuse will result in a 60 per cent carbon reduction compared to a new build, while the building will also have a 50 per cent carbon reduction in building operation, with an environmentally sustainable design at the core of the redevelopment.

The sustainable design incudes including solar panel systems, electric vehicle charging points, hydraulic efficiency, solar panels, smart systems and touchless technology, with Merchant House targeting a 5-star NABERS energy rating and 5-star Green Star As-Built rating upon completion.

Merchant House will feature a dedicated wellness floor known as ‘The Sanctuary’ on level four, which encompasses an outdoor terrace area as well as end-of-trip facilities, treatment rooms, sauna and a steam room.

Space in Merchant House is being marketed for lease by Knight Frank agents Al Dunlop and Mike Unwin, along with Linda Ko and Ben Turner of JLL.

Net leasing rates are around $1250/per square metre, with floorplates ranging from 728sq m to 1157sq m., with the upper level space offering views over Darling Harbour.

Mr Dunlop said the space in Merchant House was designed to meet the needs of tenants in the post-COVID world, where preferences had shifted.

“There are many unique factors about this development that will attract tenants looking at their future space requirements this year,” he said.

“ESG is one factor, while the luxury facilities in the wellness centre on level four are another – I haven’t seen this level of luxe in a Sydney office building before.

“The Sanctuary outdoor space is cutting edge in terms of office design, and will be a big drawcard for tenants, as we know that post-pandemic the vast majority of tenants are looking for some outdoor workspace that provides fresh air for employees.

“It provides a greener, healthier product with natural ventilation.”

Ned O’Neil of Addenbrooke, the developer behind the project, said in granting approval for Merchant House just two weeks ago, council saw the potential of creating a new level of amenity for tenants and allowed the relocation of this floor area onto a new premium level on the 15th floor.

“In total over 900 square metre of nett lettable area was moved from this part of the building to make way for the double height void space and wellness facilities which make up The Sanctuary,” he said.

“We think tenants will be drawn to this hotel quality concept and we believe it is time that office buildings offer this level of amenity.

“We believe this is a first for a Sydney office development, and demonstrates the importance of open air space for new office developments in the post-pandemic environment.

“This is likely the start of a new trend for projects going forward.”

Mr Turner said: “The new development acutely considers the needs of occupiers and how they will utilise the building as a whole, not just the floor they occupy.

“From the entry café experience to The Sanctuary, Merchant House will offer an unrivalled level of amenity that simply cannot be replicated working from home.

“The adaptive reuse of Merchant House sets the bar in considering the new needs of tenants in a post-pandemic world, while simultaneously enticing workers back to the office and attracting employees amid the growing competition for talent.”

For further information, please contact:

Vanessa De Groot – Marketing & Communications, Knight Frank
Vanessa.degroot@au.knightfrank.com +61 410 460211

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Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 16,000 people operating from 384 offices across 51 territories. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the firm, please visit knightfrank.com.