Major Corporations Move Into Luxury Newcastle A-Grade Building

The eight-storey 5,830sqm fully electric mass timber construction building was completed by DOMA.

The most recent A-Grade building completed in Newcastle has been fully leased by Colliers to a number of nationally-renonwed occupiers.

The 5,830sqm building is the latest development to be completed by DOMA, with Ausgrid being the major tenant, with Adecco and Medilogic joining them.

The eight-storey fully electric mass timber construction building is co-located with the Little National Hotel, and was built targeting a 6 Star Green Star rating and a 5.5 star NABERS Energy Rating.

Occupiers have been attracted to the sustainability initiatives, which align with their own ESG policies, but have also acknowledged the added amenity available within the Honeysuckle precinct.

“In the current market staff attraction and staff retention are key thematics, not only in Newcastle but nationally, so the demand we have seen for 42 Honeysuckle Drive is not surprising”, said Peter Macadam, National Director from Colliers.

“The building is the first Cross Laminated Timber workplace available for lease in the Newcastle market, and one of few constructed in Australia. We pride ourselves on setting new benchmarks in our projects, and believed the tenants would want to fulfill their environmental sustainability goals and value the offering” said Chris Farrington from DOMA.

The demand for new buildings and A Grade accommodation has continued post Covid, with the Newcastle net absorption now averaging over 7,000sqm per annum, based on the Property Council of Australia statistics.

“Our research indicates that 47 per cent of deals since 2021 have related to tenants expanding and upgrading, with 31 per cent of deals relating to tenants new to the CBD market”, added Mr Macadam. “The key driver used to be flight to quality, but you can now add flight to experience, and that is certainly the case for the tenants at 42 Honeysuckle Drive”.