Expensive Names Up In Lights
Sydney Morning Herald
Monday October 21, 1996
Canon has paid what is believed to be an Australian record price of $500,000 to put its name in neon lights over a North Sydney office building.
Two red and white Canon signs will replace the Qantas Jetabout signs on Axiom Funds Management's 24-level office tower at 141 Walker Street in the next few weeks. Qantas was on a long-term agreement worth $150,000 a year but no longer had any use for the Jetabout sign.
Signage deals are few, the most recent in North Sydney being a deal to put Hyundai's name on top of Schroders' Northpoint office tower, North Sydney's tallest building. Hyundai has leased the rights until 2003 at a price believed to be just under $300,000.
However, Canon's position above the Qantas Jetabout building is regarded as the best exposed of any in North Sydney's "glitter mile".
The Canon deal was negotiated by Colliers Jardine with Impact Advertising.
Colliers's North Sydney director, Mr John Kenny, said developers and building owners were increasingly conscious of the value of signage rights, given that in North Sydney, signage rents can equate to renting two to three whole floors of office space. "Developers are also conscious of the added revenue that can be generated from naming and signage rights and design new buildings accordingly," he said.
North Sydney commands Sydney's best prices for sky signage because of its high exposure to traffic on the busy expressway, trains, planes and even ships in Sydney Harbour.
According to Mr Kenny, annual net rents for North Sydney signage could top $750,000 by 2000, driven by the tight supply of new offices. "These traditional factors are pushing signage costs skywards, fuelled by the nearing lure of the Sydney Olympics.
"We had a lull in signage values in the early 1990s as the office property market slumped, and signage rights were often offered as part of a leasing deal to attract a major tenant."
© 1996 Sydney Morning Herald
