Managing assets effectively through the peaks and troughs of the property cycle is one of Cromwell's core skills. The business has a strong track record of recycling assets and addressing leasing risk to maximise the value of the portfolio.

While the Group's diversified portfolio goes some way towards protecting investors from individual asset risk, managing assets in tough markets remains important to actively managing and improving the overall quality of the portfolio. It is during these periods when flexibility and creativity are paramount to success.

After many years of strong growth and high rental demand, the Brisbane market has, along with the Perth market, become increasingly competitive in recent times with the slowdown in the resources and mining sectors and cuts to the public service.

200 Mary Street in the Brisbane CBD is Cromwell's corporate headquarters, but the building has faced challenges in securing new tenants in the current market.

In response, Cromwell has developed a detailed strategy to reposition and reinvigorate the building to reflect the needs of the market by offering greater amenity and more flexibility around lease terms and tenancy size.

Cromwell Director of Leasing Bobby Binning believes thinking creatively about improving tenant amenity and being flexible and adaptable to tenants' needs are important to differentiating a building in challenging markets.

"When potential tenants have so many options to choose from, providing a little bit of extra value with some great amenities and services can make all the difference," he said. "We have already started to see the success of the program with a strong pipeline of potential leases under negotiation."

200 Mary Street Improvements

End of Trip Facility

As well as the building's great location and competitive terms, prospective tenants have access to a range of shared amenities including a state-of-the-art end-of-trip facility that provides secure bike storage, lockers and showering facilities.

Workspace Flexibility

Tenants will also have access to a modern co-working space complete with Wi-Fi, meeting rooms and individual workspaces. The space provides an ideal environment for tenants in the building who do not require large meeting rooms all the time but need flexibility for visiting staff or during periods of increased activity.

The space on the mezzanine level will be managed under an agreement with serviced office operator Regus, who is also taking over the lease on the whole of level 7 of the building.

Lease Flexibility

The co-working space amenity is part of Cromwell's strategy to attract SMEs and start-ups that are more willing to take up shorter leases or who have a requirement to be able to dial-up or down their workforce without being forced to commit to their maximum space requirement.

That level of lease commitment can see tenant's moves up through the building starting with a very low level of commitment in the co-working space, through to short term offices with Regus, up to medium and long term leases directly with Cromwell.

Part of the strategy is to give tenants the flexibility to grow their business within the ecosystem of the building, while retaining a central CBD location.

Technology

Plans are underway for a tenant portal to provide a technical solution that brings services to the building's population and supports the sense that they are a part of a "vertical community".

Opportunities to allow external service providers like caterers, car park operators, dry cleaners and printers are being investigated which will allow them to link services to the portal. The portal will provide tenants with hyper-local news content to keep them connected to the people, businesses and activities in and around the building.

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