Colliers International fields mass enquiry into Melbourne’s inner-east office leasing opportunities
The last floor of the $85million Tower One office building at Chadstone Shopping Centre has been snapped up in record time, prompting a wave of enquiry into leasing opportunities in the area.
Cotton On Group has committed to about 1,700sqm on level six in the Vicinity Centres/Gandel Group-owned 11-level, 16,000sqm building.
Colliers International’s Rob Joyes, Travis Myerscough and Kevin Tutty were appointed as leasing agents for the spec-developed tower, securing eight tenants to reach full capacity nine months ahead of schedule.
“Tower One has been an outstanding success in terms of the rapid take-up of space, reaching 100 per cent committed occupancy within three months of practical completion,” Mr Joyes said.
“Net rents achieved have ranged from $350 per sqm net to $365 per sqm net.”
Mr Joyes said the tenant mix was largely characterised by the property and retail sectors, including Colliers International's south-east office and the tower owners themselves, Gandel Group and Vicinity Centres.
“The Body Shop, Shaver Shop, Ricegrowers (SunRice) and Cotton On have gravitated toward the benefits of being closely located to their retail operations within Chadstone Shopping Centre,” he said.
Colliers International’s Office Leasing team continues to be inundated with enquiries for office space at Chadstone.
“We’re regularly asked when the next building is coming,” Mr Joyes said. “This pent-up demand indicates that Chadstone is a genuine office location, given the high standard of onsite staff amenity, as well as a proposed hotel and proximity to the shopping centre.
“The success of Tower One is fuelling consideration for more office space at Chadstone and throughout Melbourne’s inner-east.”
Colliers International’s national director for Research, Anneke Thompson, confirmed that strong demand in the inner-eastern suburbs had fuelled record effective rental growth.
“In the year to March 2017, effective rents have increased by 9.1 per cent, the strongest increase we have seen since our data series began,” she said.
“Given the low supply levels in the immediate outlook, further increases are forecast and we expect to see an increase in effective rents of 9.0 per cent during the next 12 months.”