Tim Rookes, managing director of CBRE, tells Cityscape how returning to the central city has given his team’s energy levels a real boost.
How did you approach moving from out of town back to the central city? We moved back in mid-August. It was always the master plan to move back but location and profile were key.
What process did you follow? There were limited locations to fit the bill that aligned with our lease expiry. Tim Glasson spoke to us about his planned building on the former Stewart Dawsons corner – fantastic location, great aspect down Cashel and High with great presence and signage available. The floor plates were irregular but we saw an opportunity for a focused working floor and a dedicated client suite on the top floor with a balcony and unimpeded views to the Port Hills and evening sun. Perfect.
What factors were important for you in a new space? It was all about a central location in the CBD and the opportunity to align our premises with our brand. We wanted a work environment that motivated and inspired, reinforced by a community of activity and vibrance – this is what the CBD is delivering for us. It was important for us to show our commitment to the city and return to the new CBD. It was never about move back or not, it was about the right opportunity.
Any tips for others contemplating doing the same? You need to make the right decision for your business, your team and your clients. If the CBD meets your objectives you will not regret it – new premium space, a refreshed vibrancy and amenity aplenty.
How willing did you find building owners were to negotiate on price and terms? There was a principle of reasonableness in our project. Our landlord, Tim Glasson, was very clear on his vision for the building, and our global brand aligned with the tenant profile he was looking to achieve. The outcome was a great deal for both parties.
Some small businesses are delaying their return because of what they see as prohibitive rents in the new developments – any thoughts on that? Will rents get cheaper as more buildings go up? Landlords are willing to negotiate – there is a direct correlation between the location, the lease term you offer and rent levels. Landlords are motivated to see their tenants succeed and the CBD thrive.
What difference has it made to your business and the team being back in the central city? There is a genuine energy from being in the heart of the CBD again – this invigorates the team. The change opportunity that new premises create has improved engagement and instilled a sense of pride in the team that I am sure will translate into business performance. Also, the daily routine of getting a coffee has led to impromptu meetings with clients. We can see it will improve doing business; relationships will become more constant.
Have you changed your culture and working style as part of the shift? We have adopted an agile work environment – creating ‘places’ to work, not just the typical desk. It will be an adjustment, but the team are up for it and it will improve collaboration. Being over two floors has intensified our work environment while also sending a message to our clients with our dedicated client floor that we value their engagement.
Is the new space all hot desks and breakout spaces? Are rubbish bins still allowed? Hot desks are old-school, we are about being agile. Our support teams have permanent locations and our valuation team have a more conventional working environment but they are embracing the ‘places’ to work that we have created. The prime frontage belongs to no one but can be used by all. And rubbish bins are out. Any resistance? Two challenging conversations and we are all on board.
As one of the city’s leading leasing agents, what trends are you seeing as businesses return to the central city? Over the last 18 months the tenants have had a great deal of sway; now the balance of power is more in equilibrium. The space is being absorbed and large tenancies are harder to find, but the larger requirements are few and far between. Great buildings like ours will continue to emerge but the obvious infilling will take time. Tenants in the suburbs will still be courted to relocate into the CBD, but lease expiries will influence the likelihood of a move – as always, proactive landlords will be most likely to retain tenants. For those for whom the CBD is the right fit, none will regret it, and we all benefit from a more vibrant CBD.
Do you have any thoughts on any of the developments going up in the city? We have thoughts on them all – bring on the Riverside Market; imagine the positive impact the Convention Centre is going to have, and a completed Arts Centre and Performing Arts Precinct, a new stadium, a Metro Sports facility. We will have them all eventually and we will be a city amongst cities – a ‘build it and they will come’ adage I am sure will be true for our great city!