Colliers International welcomes CFA headquarters to market
The long-term headquarters of the Country Fire Authority (CFA) has hit the market, as office tenants continue to seek space in Melbourne’s outer east.
The modern three-level office building at 8 Lakeside Drive, Burwood East, is one of the most high-profile buildings within Tally Ho Business Park, with 4,552.5sqm lettable area, a three-star NABERS Energy rating and 121 onsite car spaces.
Colliers International’s Peter Bremner, Rob Joyes and Rachael Clohesy, in conjunction with Dawkins Occhiuto’s Andrew Dawkins, Walter Occhiuto and Chris Jones, are marketing the property via expressions of interest closing in August.
“The property’s current WALE by income is about 2.5 years, offering the security of two outstanding-calibre tenants in the CFA and Telstra, which generate $1,697,176 net per annum,” Mr Bremner said.
“Both tenants have been long-term occupiers.”
Mr Dawkins said the CFA has two further options to renew under its current lease terms.
“The CFA has maintained its lease since the building’s construction in 1990 and currently occupies three buildings within Tally Ho Business Park, demonstrating its commitment to the area,” he said.
“Significant investment has been made by the tenant in upgrading its IT, Uninterruptible Power Supply, telecommunications and back-up generators, adding another layer to the CFA’s loyalty.
“Telstra, on the other hand, has occupied a small portion of the building since 1990, with its purpose being to service the Tally Ho Business Park.”
Zoned Commercial 1, the 5,456sqm allotment is well positioned for future re-development or expansion, subject to council approval.
“The modern office space benefits from extensive natural light from its glazed facades and central core, and can easily be repositioned in the future to diversify the income, considering its subdivision potential,” Mr Bremner said.
Tally Ho Business Park is a renowned important emergency services precinct about 18 kilometres east of Melbourne’s CBD, with about 22,000sqm of the total office supply (80,000sqm) occupied by Victorian government statutory authorities, including VicRoads, the Emergency Services Telecommunications Authority and Ambulance Victoria.
“The estate is favoured by critical emergency services and government organisations, which require excellent security and power feeds and 24-hour operations in a fire- and flood-safe location,” Mr Joyes said.
Other long-term occupants of Tally Ho Business Park and surrounds include Motorola, Hewlett Packard, World Vision, National Archives, Pronto Software, IAG Insurance, ANZ Bank and Yokogawa.
Mr Joyes said affordability was driving tenants to the outer-eastern suburbs.
“With the city-fringe vacancy rate at an all-time low of 3.47 per cent and rents continuing to rise, the outer east is becoming more and more attractive to tenants looking for quality space for a fraction of the price,” he said.
“In addition, comparable office precincts are experiencing a change in use. Prospect Street and Whitehorse Road in Box Hill, a traditional office market of some 150,000sqm, are currently moving towards high-rise residential development.
“We have recently seen several examples of Box Hill office tenants relocating south towards Burwood East and Mulgrave Business Park locations.”