IT heavyweight leads suburban exodus to Southbank
April 24, 2012
Fast-growing IT integration company Data#3 is leading an increasing group of suburban-based businesses setting their sights on the Southbank precinct to meet their expanding office needs as space becomes tight in sought-after fringe locations.
Colliers International office leasing agents have negotiated a series of leases recently which have seen suburban tenants move into Southbank and surrounding areas.
Office Leasing Associate Director, Ben McKendry, and Executive, Leah Baxter, have negotiated two new leases at 55 Southbank Boulevard, Southbank to tenants relocating from Hawthorn.
Ms Baxter said IT company Data#3 and financial services provider Bibby Financial had taken 1,290sq m and 450sq m respectively at 55 Southbank Boulevard.
“These tenants are both relocating to Southbank from Hawthorn, where there is a notable shortage of stock,” she said.
Christine Scammell, Data#3 General Manager – Victoria, said the move was about improving location and amenity for staff and clients alike as the company grew.
“Data#3 is very excited to be moving to Southbank, and leave behind our current Hawthorn East office,” Ms Scammell said.
“The move into the city will allow us to increase our exposure and profile, enhance our ability to engage with our customers and partners, as well as provide our staff with access to one of the most vibrant precincts in Melbourne.
“As a fast growing IT Integrator, we see this move as another key step in our ongoing investment and success in Victoria.”
Ms Baxter said there was a “real pull” towards the Southbank area at the moment.
“Tenants are on the hunt for quality contiguous floorspace within close proximity to the city,” she said.
“People are looking at Southbank and St Kilda Road as very attractive alternatives.”
Mr McKendry said asking rents in the building were around $300 net per sqm, with Data#3 signing up for seven years and Bibby for five. The lessor was Bennelong Funds Management.
Mr McKendry said these new agreements came in the wake of a spate of leases signed by suburban tenants looking to consolidate closer to the city.
“In recent times, we have seen Don KRC move to 187 Todd Road, Port Melbourne from Laverton; Sodexo move from Camberwell to 607 St Kilda Road; McCain Foods move from Clayton to 616 St Kilda Road; and Quest Software and Brown Tomkinson relocate from Camberwell to 55 Southbank Boulevard,” Mr McKendry said.
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