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PROPOSED LEASE TENANCY FOR PEREGIAN DIGITAL HUB · Report
SERVICES & ORGANISATION COMMITTEE MEETING 11 APRIL 2023
5.4 PROPOSED LEASE TENANCY FOR PEREGIAN DIGITAL HUB
Author Digital Hub Director, Christopher Boden
Environment and Sustainable Development Department
Index ECM/ Subject/ 45.04 Economic Development
Attachments 1. Nabooki - Leasing Overview and Recomendations 2023
2. Nabooki - Lease Proposal
EXECUTIVE SUMMARY
Council has secured a prospective tenant for a new 75m2 office space at the Peregian Digital Hub.
The tenancy becomes available on 1 May 2023 when the Hub transitions its programs and events
to the new AI Lab facility that has recently been completed. This tenancy helps bolster and stabilise
the Hub’s revenues by way of a multi-year lease.
The proposed tenant, Nabooki, is a Noosa tech success story, employing over a dozen staff and
providing their Software as a Service platform to a wide variety of enterprise clients. Council’s
Property Management Service provider, Colliers, has run a market process and evaluated Nabooki
as a strong fit with the Hub’s industry development objectives and culture.
RECOMMENDATION
That Council note the report by the Digital Hub Director to the Services & Organisation Committee
Meeting dated 11 April 2023 regarding the commercial lease of office space at the Peregian Digital
Hub and:
A. Agree to enter a commercial lease of the Unit 5 premises of 75m2 to Nabooki Pty Ltd. for a
two year term, as generally outlined in the report;
B. Authorise the CEO to award up to three subsequent lease extensions each of 1 year, subject
to the lessee complying with the terms of the lease.
REPORT
The purpose of this report is to seek Council approval to enter into a new lease for commercial office
space at the Peregian Digital Hub.
The Hub’s programs and events are currently run from the CoLab – an open plan area on the ground
floor. Council has now completed construction of the Peregian Digital Hub’s AI Lab which provides
a new home for those programs, starting from May 2023.
The current CoLab space has been fitted out as a stand-alone office space of 752m (now, called Unit
5), with new wall and security access. That work was completed as part of the Lab construction
project and is funded under the same Federal Government grant agreement.
Council decided to tenant the Unit 5 space rather than increase the amount of co-working capacity
on the basis that it would help to stabilise the revenue mix and present an accommodation
opportunity for a growing technology company in the region.
Sourcing and evaluation of prospective tenants for Unit 5 has been undertaken by Colliers, Council’s
contracted provider of Property Management Services, in accordance with the Local Government
Regulation 2012 and guided by the Sound Contracting Principles set out in the Local Government
Act 2009.
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SERVICES & ORGANISATION COMMITTEE MEETING 11 APRIL 2023
Colliers has worked collaboratively with the Digital Hub Director to ensure that Council’s strategic
objective of bringing together the optimal mix of technology company tenants in the Hub is achieved.
Colliers received a high-quality tenancy application for unit 5 and have recommended Nabooki Pty
Ltd as the prospective tenant for unit 5 at the Digital Hub, guided by criteria that evaluate both their
ability to meet the commercial obligations of the tenancy and their fit with the industry development
objectives and culture of the Hub.
Colliers has provided Council an outline of the procurement process, timeline and assessment
criteria, refer Attachment 1.
The primary lease provisions proposed are as follows:
Lease Provision Proposal
Unit 5
Lessee Name: Nabooki Pty Ltd.
Premises: Lease C being part of Lot 95 on SP137431
as shown on the Plan, 253-255 David Low
Way
Nett Lettable Area: 75m2 approximately
Commencement 01.05.2023
Date
Initial Lease Terms: 2 years
Options to Extend: 1 option, of 2 years
Base rental $38,775 exc GST per annum (to be paid in
monthly instalments in advance)
Market Rent CPI reviews annually with Market review at
Reviews: exercise of option
Outgoings: An annual contribution of $5,000 per
annum, paid monthly and increasing
annually on 1 July by CPI.
Permitted Use: Professional Office
Rental Free Period Nil
Bond: Three month’s rent plus Outgoings plus
GST to be paid by the lessee to the lessor
by cash or bank guarantee upon execution
of the lease.
It is recommended Council agrees to enter commercial leases with Nabooki Pty Ltd. generally in line
with the above provisions.
Previous Council Consideration
Ordinary Meeting Minutes, 19 May 2022, Item 1, Page 3
That Council note the report by the Economic Development Manager to the Services & Organisation
Committee Meeting dated 10 May 2022 regarding the commercial lease of office space at the
Peregian Digital Hub and:
A. Agree to enter a commercial lease of the Unit 3b premises of 45m2 to TP Collab Trading Pty Ltd.
for a three year term, as generally outlined in the report;
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SERVICES & ORGANISATION COMMITTEE MEETING 11 APRIL 2023
B. Authorise the CEO to award up to three subsequent lease extensions each of 1 year, subject to
the lessee complying with the terms of the lease.
Finance
The financial return posed by the new lease is as detailed above. Unit 5 has been partitioned with
wall and security doors as part of new AI Lab construction. Revenue contribution from this lease is
factored into the Peregian Digital Hub’s 2023/24 budget.
Risk & Opportunities
The prospective tenant is a software company that has been based in Noosa for a number of years
and grown to employ over a dozen staff, the majority of whom would be based out of the Hub office.
Consultation
External Consultation - Community & Stakeholder
● Commercial Real Estate Agents
● Prospective tenants
Internal Consultation
Departments/Sections Consulted:
Mayor Community Services Corporate Services
Councillors Director x Director
Community Development Financial Services
Chief Executive Officer Community Facilities Fleet
Executive Support Libraries & Galleries ICT
Local Laws Procurement
Waste & Environmental Health x Property
Revenue Services
Executive Services Environment & Sustainable Development Infrastructure Services
Director x Director Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning Infrastructure Planning,
Design and Delivery