Chadstone Shopping Centre’s $85 million office building, Tower One, has reached its capacity nine months ahead of schedule, according to Colliers International.
The last floor of the building has been snapped up in record time, prompting a wave of enquiry into leasing opportunities in the area. The 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 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,” Joyes said. “Net rents achieved have ranged from $350 per square metre net to $365 per square metre net.”
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.
Joyes said the success of Tower One is fuelling consideration for more office space at Chadstone and throughout Melbourne’s inner-east.
“We’re regularly asked when the next building is coming,” he said.
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.”
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.
