Article | Adaptive Spaces
Suite As: Fitted CBD office suites are proving popular with SME occupiers
At a time when companies are working hard to entice their people back into the office in an evolving hybrid working environment, an old-new category of office space is coming back to the forefront of many small to medium-sized occupiers’ minds – and moves: fitted office suites.
January 8, 2025
Media Contact
Dan Scott
Marketing and Pitch Director, New Zealand
This is not a new thing. Robert Jones Holdings has been offering fitted office suites for 15 years at least, and very successfully. So what’s new now, and why are more landlords and occupiers exploring this path?
Matt Hockey, Director of Office Leasing within Auckland CBD, says that fitted CBD office suites are working well for landlords and for occupiers in today’s market, for a number of reasons.
“First, today’s hybrid working era is requiring employers to work hard to attract people into the office. The suites we’re seeing in the market are well-designed spaces in great locations. They provide a plug-and-play solution for occupiers looking for an attractive, modern environment that ‘earns the commute’ of their people.
This is great for SMEs, which don’t often have the time or expertise to manage office fit out projects. They are easy for occupiers to move in, with fit out and furniture provided.”
Hockey says that tenancies are typically between 75sqm to 350-400sqm, and are aimed at SMEs that have between 5-40 people. “As soon as you start getting bigger than 500sqm it can become difficult to anticipate how a occupier needs to fit the space out. They are also good for smaller organisations as they can often be leased on more flexible lease terms. This can take the form of a simple licence or short-form lease agreement, making it easier for everyone. And they typically do not have reinstatement requirements, which enables a clean getaway at lease expiry.”
There are also benefits for landlords, says Chad Crenfeldt-Smith, Senior Negotiator, Office Leasing – Auckland CBD. “Fitted suites enable landlords to widen their market opportunity. Instead of trying to lease a whole floor at one rental price point, they are leasing parts of floors with a fully-fitted interior, effectively using what might have been an incentive sum to create a tenancy opportunity for an occupier.”
“This is a landmark building in the heart of Auckland’s CBD. It ticks all the right boxes for its superb location and amenities, such as an on-site childcare facility, yoga studio, upmarket lobby cafe and New World supermarket.
“The tower’s owner, Invesco, recognised that the building’s octagonal floorplate lends itself to splitting some of the floors up to create multiple tenancies. Invesco has taken the initiative to put in six exceptionally-designed suites, leasing them as 75-250sqm spaces with meeting rooms and kitchen areas, and even furniture. This makes it so easy for a prospective occupier to make the decision to locate in the building, as everything they want is already in place.
“The advantage of this approach for Invesco is that there are many more occupiers of this size and scale in the market. For the occupiers, taking a new space that has been fitted out in this building is pretty appealing. Furthermore, the suites that are going in and leasing right now will have a lifecycle that lives beyond the first occupier.”
“Our brief was to reimagine the floorplate and create solutions that work well for modern tenants, utilising the right areas of the floorplate for the right uses. 125 Queen presented challenges and opportunities. Being octagonal does make it more difficult to plan, but also more interesting as we can push the design more. We focused on unlocking the potential of the building, with a thoughtful approach to enhancing natural light and creating a balance between practicality and aesthetics.”
“The goal with fitted suites is ensuring we create interest and excitement for occupiers while making them neutral enough so they can put their own stamp on the space. Practical questions we worked to answer include how we can design a comfortable tenancy split on each level, a recipe Cachet has worked on refining with each suite.
It is all about ensuring we plan for suitable sized organisations and accommodating a balance of workspaces to meeting rooms and the like for them. Once that is locked in, we work to create spaces that are about much more than the carpet tile and desk space. For instance, the meeting rooms are not just rectangles. We used a bit more dynamism in our planning and shapes, creating curves to soften and contrast with the octagonal shape of the building.”
“We also worked to incorporate visual interest and features such as variant colour themes, feature lighting in key areas, timber batten screening and integrated planting, overall adding excitement for people when they’re looking at tenancies. Every space is different. Breakout spaces were strategically positioned to take advantage of the city views, not only to offer a visual connection to the bustling cityscape but also to serve as an inspiring space for collaboration and relaxation.”
Sullivan says that Cachet has created a look and feel that is very successful at 125 Queen St. “The result is a series of suites that offer both functionality and comfort, perfectly suited to the needs of various occupiers. With three of the suites leased pre-construction and another currently in progress, the project reflects Cachet Group’s commitment to creating spaces that are impactful environments for occupiers and asset owners alike.
“It doesn’t stop there. We recognise that variety is important so Cachet is continuing to work on introducing the next chapter of suites to the market, so we can help to create a range of spatial experiences, even within the same building.”
Wayne Irons, Director at Turner & Townsend, says that after doing the deal to take the suite earlier this year, the New Zealand team of 30 people moved from its previous location in a nearby serviced office into 375sqm of space with 36 desks in 34 Shortland Street in June. He says that a fully fitted suite, something built and ready to go was what they were looking for.
“Although we are a large global professional services company headquartered in the UK, we have a smaller footprint in New Zealand, so a fitted suite was appropriate for our needs. It enabled us to move out of a collaborative space and take our own postage stamp at low cost. To get the capital to do fitouts is a challenge, so it is a great solution that enables us to scale up a global business here with low overheads, low capital cost. It also gives us a proper office environment for our staff, which helps with staff attraction and retention.
“The experience of negotiating our adaptations to standard space was easy and smooth, and after we installed our own AV and networking technology we made what was essentially a plug-and-play move. It was low-stress, an easy location and space to move into, without having to take on a whole project.”
So, as the attraction grows alongside the number of fitted suites available for leasing in Auckland’s CBD, where does CBRE’s Matt Hockey see the market going from here?
“There’s no doubt that suites are popular due to the size of the tenancies and the types of smaller, but “growing” occupiers looking for them. One of the things that makes them so useful for occupiers and landlords alike is their versatility. If an occupier outgrows their space there are often other spaces to move into in the same building. Having a variety of sizes in the same building enables movement and growth for the occupier and landlord alike. We see the growing attraction and growth of the fitted suites market continuing alongside the hybrid world of work. Why? Because everyone’s a winner.”
Matt Hockey, Director of Office Leasing within Auckland CBD, says that fitted CBD office suites are working well for landlords and for occupiers in today’s market, for a number of reasons.
“First, today’s hybrid working era is requiring employers to work hard to attract people into the office. The suites we’re seeing in the market are well-designed spaces in great locations. They provide a plug-and-play solution for occupiers looking for an attractive, modern environment that ‘earns the commute’ of their people.
This is great for SMEs, which don’t often have the time or expertise to manage office fit out projects. They are easy for occupiers to move in, with fit out and furniture provided.”
Hockey says that tenancies are typically between 75sqm to 350-400sqm, and are aimed at SMEs that have between 5-40 people. “As soon as you start getting bigger than 500sqm it can become difficult to anticipate how a occupier needs to fit the space out. They are also good for smaller organisations as they can often be leased on more flexible lease terms. This can take the form of a simple licence or short-form lease agreement, making it easier for everyone. And they typically do not have reinstatement requirements, which enables a clean getaway at lease expiry.”
There are also benefits for landlords, says Chad Crenfeldt-Smith, Senior Negotiator, Office Leasing – Auckland CBD. “Fitted suites enable landlords to widen their market opportunity. Instead of trying to lease a whole floor at one rental price point, they are leasing parts of floors with a fully-fitted interior, effectively using what might have been an incentive sum to create a tenancy opportunity for an occupier.”
Leasing up 125 Queen Street
Hockey confirms this by adding that two good examples of recently completed office suites in Auckland’s CBD can be found at 125 Queen Street and the ANZ Centre nearby on Albert Street. Focusing on 125 Queen Street, Hockey says it is a great example of a commercial landlord creating fitted suites to fill spaces.“This is a landmark building in the heart of Auckland’s CBD. It ticks all the right boxes for its superb location and amenities, such as an on-site childcare facility, yoga studio, upmarket lobby cafe and New World supermarket.
“The tower’s owner, Invesco, recognised that the building’s octagonal floorplate lends itself to splitting some of the floors up to create multiple tenancies. Invesco has taken the initiative to put in six exceptionally-designed suites, leasing them as 75-250sqm spaces with meeting rooms and kitchen areas, and even furniture. This makes it so easy for a prospective occupier to make the decision to locate in the building, as everything they want is already in place.
“The advantage of this approach for Invesco is that there are many more occupiers of this size and scale in the market. For the occupiers, taking a new space that has been fitted out in this building is pretty appealing. Furthermore, the suites that are going in and leasing right now will have a lifecycle that lives beyond the first occupier.”
Designing spaces to work well
Sarah-Jane Sullivan, Design Lead at Cachet Group, the commercial office design and fit out specialists who designed the suites in both 125 Queen Street and the ANZ Centre, says that the fitted tenancies in 125 Queen range from 117sqm-307sqm on levels 9, 10, 11 and 17, and are designed to suit businesses from 5 to 35 staff.“Our brief was to reimagine the floorplate and create solutions that work well for modern tenants, utilising the right areas of the floorplate for the right uses. 125 Queen presented challenges and opportunities. Being octagonal does make it more difficult to plan, but also more interesting as we can push the design more. We focused on unlocking the potential of the building, with a thoughtful approach to enhancing natural light and creating a balance between practicality and aesthetics.”
“The goal with fitted suites is ensuring we create interest and excitement for occupiers while making them neutral enough so they can put their own stamp on the space. Practical questions we worked to answer include how we can design a comfortable tenancy split on each level, a recipe Cachet has worked on refining with each suite.
It is all about ensuring we plan for suitable sized organisations and accommodating a balance of workspaces to meeting rooms and the like for them. Once that is locked in, we work to create spaces that are about much more than the carpet tile and desk space. For instance, the meeting rooms are not just rectangles. We used a bit more dynamism in our planning and shapes, creating curves to soften and contrast with the octagonal shape of the building.”
“We also worked to incorporate visual interest and features such as variant colour themes, feature lighting in key areas, timber batten screening and integrated planting, overall adding excitement for people when they’re looking at tenancies. Every space is different. Breakout spaces were strategically positioned to take advantage of the city views, not only to offer a visual connection to the bustling cityscape but also to serve as an inspiring space for collaboration and relaxation.”
Sullivan says that Cachet has created a look and feel that is very successful at 125 Queen St. “The result is a series of suites that offer both functionality and comfort, perfectly suited to the needs of various occupiers. With three of the suites leased pre-construction and another currently in progress, the project reflects Cachet Group’s commitment to creating spaces that are impactful environments for occupiers and asset owners alike.
“It doesn’t stop there. We recognise that variety is important so Cachet is continuing to work on introducing the next chapter of suites to the market, so we can help to create a range of spatial experiences, even within the same building.”
Working well for occupiers
Ultimately, the suites must work for their occupiers. One organisation that is well placed to comment on that is professional services firm Turner & Townsend, which CBRE just put into a fitted suite on level eight at 34 Shortland Street, a prominent office tower next to the Vero Building in central Auckland.Wayne Irons, Director at Turner & Townsend, says that after doing the deal to take the suite earlier this year, the New Zealand team of 30 people moved from its previous location in a nearby serviced office into 375sqm of space with 36 desks in 34 Shortland Street in June. He says that a fully fitted suite, something built and ready to go was what they were looking for.
“Although we are a large global professional services company headquartered in the UK, we have a smaller footprint in New Zealand, so a fitted suite was appropriate for our needs. It enabled us to move out of a collaborative space and take our own postage stamp at low cost. To get the capital to do fitouts is a challenge, so it is a great solution that enables us to scale up a global business here with low overheads, low capital cost. It also gives us a proper office environment for our staff, which helps with staff attraction and retention.
“The experience of negotiating our adaptations to standard space was easy and smooth, and after we installed our own AV and networking technology we made what was essentially a plug-and-play move. It was low-stress, an easy location and space to move into, without having to take on a whole project.”
So, as the attraction grows alongside the number of fitted suites available for leasing in Auckland’s CBD, where does CBRE’s Matt Hockey see the market going from here?
“There’s no doubt that suites are popular due to the size of the tenancies and the types of smaller, but “growing” occupiers looking for them. One of the things that makes them so useful for occupiers and landlords alike is their versatility. If an occupier outgrows their space there are often other spaces to move into in the same building. Having a variety of sizes in the same building enables movement and growth for the occupier and landlord alike. We see the growing attraction and growth of the fitted suites market continuing alongside the hybrid world of work. Why? Because everyone’s a winner.”