Colliers International leases final office tenancy in refurbished tower
As 2015 comes to a close, Frasers Property has hung out the ‘no vacancy’ sign at the revitalised 357 Collins Street.
The final lease for a remaining 345sqm on Level 14 at 357 Collins Street has been secured by Folkestone on a five-year lease.
Folkestone’s commitment takes the new-look office building at the centre of Melbourne’s sought after Collins Street to fully leased. It follows leases to Orange Business Services for 1,070sqm on Level 13 and Oceana Gold for 707sqm earlier this year.
Colliers International’s Edward Knowles has been responsible for the office leasing at 357 Collins Street in conjunction with Knight Frank’s James Pappas and Simon Hale.
Mr Knowles said Folkestone, Orange and Oceana Gold would join an enviable line up of office tenants including Commonwealth Bank of Australia, Growthpoint, Wilson HTM, Infor, Meridian Energy, Omega Global Investors, Marshall McAdam, Cue Energy and Axis.
“The renewal of 357 Collins Street by Frasers (formally Australand), has resulted in the creation of one of Melbourne’s most desirable A Grade buildings in an iconic CBD location,” Mr Knowles said.
“The extensive refurbishment has delivered the market a high quality 30,000sqm A Grade building boasting popular new retail offerings, including the creation of one of Melbourne’s newest laneways, Fulham Place."
The recently completed rebuild targeted a 5 Star NABERS Rating and a 4 Star Green Star Rating. The 22 level office building now incorporates impressive new end of trip bicycle, shower and storage amenities; a 41-bay basement car park; and 1,800sqm of prime retail including a new food and beverage precinct.
“Frasers Property has brought Fulham Place, the laneway between 357 Collins Street and 333 Collins Street, to life and linked Flinders Lane to Collins Street via an activated food precinct,” Mr Knowles said.
The food precinct has 140 internal seats plus dine-in facilities within some tenancies. Popular retail tenants include Vapiano, Huxtaburger, Roll’d, Mesh, Crema Cafe, O’bento, Rock the Wok, Feeling Fruity, Hero Subs, Roll’d, Elements Espresso and Traffic. Facing Collins Street is a Thomas Pink store.
Mr Knowles said the Melbourne CBD office leasing market had been characterised in 2015 by strong levels of demand.
“We are starting to see some rental growth, which will continue into 2016,” he said. “Current figures show an average 6% annual increase in premium rents, 5% in A Grade rents and 6.5% in B Grade rents, so we are starting to see some really good year on year growth.
“Despite being spoilt for choice at the moment, with the late scurry of activity heading into December by larger tenants, options for stock on the market in the year ahead are tightening. We will see limited supply coming online while general demand remains high.”