Real estate investor and fund manager Cromwell Property Group (ASX:CMW) (Cromwell) has secured lease renewal agreements with three long-standing tenants – Technology One, AECOM, and  Bechtel – at its 540 Wickham Terrace, Fortitude Valley (HQ North), located in Brisbane’s Fortitude Valley. 

These significant lease renewals come at a time that the commercial property market in the Queensland capital is reporting strong demand and interest from businesses. 

According to Property Council of Australia statistics, Brisbane’s CBD vacancy rate experienced a  substantial decrease from 11.7% to 9.5% over the six months to July 2024.  

In addition, the overall vacancy rate for the Brisbane fringe dropped from 13.9% to 12% over the same period. 

Cromwell Head of Property Operations Tessa Morrison said, “the three lease renewals at our HQ  North building highlight the value of Cromwell’s strong tenant relationships, as well as our commitment  to continuous property enhancements.” 

“Our focus on aligning ESG objectives with the like ambitions of our tenants has driven improvements in sustainability and energy efficiency at HQ North, making it an ideal long-term home for businesses.”  

Technology One, a tenant at the property since 2010, has renewed its lease for a third time. The new seven-year agreement signed by the Australian software developer encompasses approximately 10,000 sqm of floorspace, across four tower levels, in addition to a 383 sqm area on the ground floor. 

In collaboration with Cromwell, Technology One utilised the building’s ground floor to construct a gym  – designed to foster a dynamic and health-conscious work environment that encourages staff to return  to the office in the post-COVID era. 

Expressing enthusiasm with the ongoing partnership, Edward Chung, CEO at Technology One,  stated, “our continued relationship with Cromwell has been hugely beneficial to our business. Most  notably, the addition of the new gym facility is a remarkable enhancement to the building, allowing us  to promote a vibrant and healthy workplace for our team. We are grateful for the Cromwell team’s  adaptability in meeting the changing needs of our business – and our staff.” 

Global infrastructure consulting firm AECOM, also on its third extension at HQ North, signed an additional seven-year agreement for 6,622 sqm of floorspace over two-and-a half levels.  

Kellie Reed, AECOM’s Director Operational Services Australia & New Zealand, said, “decarbonisation  and the path to net zero is embedded in everything we do – we value the ability to work together with Cromwell on our ESG objectives. The commitment to sustainable upgrades and excellent facilities at  HQ North have made it an ideal location for our operations into the future.” 

Tessa Morrison said Cromwell collaborates closely with its tenants to align ESG objectives, driving  improvements to the buildings’ NABERS Energy rating and sustainability performance to deliver on its  net zero emissions goals.

“HQ North boasts outstanding environmental credentials, earning a 6-Star Green Star v2 Office Design rating, the highest possible rating by the Green Building Council of Australia,” said Ms. Morrison. 

“Recent upgrades to the building include the installation of a magnetic bearing, water-cooled electric chiller, and a standby diesel generator, which will contribute significantly to reducing carbon emissions by 89%.” 

Cromwell’s ongoing amenities upgrades at HQ North include refurbishing the end-of-trip area to an ‘A’  grade standard, modernising the lobby, café, and entry areas, and installing LED lights and bathroom  updates in tenancies and rooftop solar panels. 

The HQ complex, consisting of two retail and office towers, is strategically positioned two kilometres  from the Brisbane CBD, and offers access to public transport and major arterial routes, affirming its  status as a prime location. 

Earlier in 2024, long-term HQ North tenant Bechtel commenced a fourth term, six-year extended  lease – with an increase in its floor space to 2,512 sqm.