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smooth operator
3,623 Posts
Discussion Starter · #1 ·
most recent postings from archived thread, continue

tayser said:
ASX eyes cheaper digs in Melbourne, electronic boards and all
Mathew Dunckley
15 May 2006
Australian Financial Review

The Australian Stock Exchange's assault on its property expenses will result in its Melbourne staff heading to much smaller premises on the opposite side of the CBD.

The exchange announced on Friday it would pay landlord GPT Group $7.2 million to surrender its lease at 530 Collins Street. It had leased about 9000 square metres there and was due to leave the building in 2012.

The exchange will instead vacate its administration and public space at the building by the end of July.

Also headed for a new home are the exchange's well-known electronic boards.

Well-placed sources said it was headed to the far-eastern end of Collins Street and would take just 700 square metres of space.

The ASX is understood to have shortlisted a number of properties between Russell and Spring streets.

A spokesman for the ASX said no decision had been made on the new home. He refused to comment on how much space would be required.

In a statement to the market, the ASX said the decision stemmed from its strategic review completed last year. As a result of that review the ASX said it wanted to reduce annual occupancy costs by between $4 million and $6 million by 2008.

It has also stated it wants to retain its network of interstate offices.

The ASX is also looking to rearrange its accommodation in other cities.

It recently relocated its Adelaide office and will soon shift its Brisbane operations into smaller premises.

It is promising to provide another update on progress in cost cutting in its full-year results.


would have been a perfect tenant for the Nauru forecourt redevelopment eh.

silvermb said:
watch out

APN sparks talk of office tower bid
Maurice Dunlevy
May 16, 2006
THE APN Property Group has fuelled speculation it is planning its largest Melbourne office development project.

APN will decide this week if it will buy land at 565 Collins Street, which has planning approval for a 33-storey, 55,000sqm tower, for a price believed to be $25 million.

The prized 3942sqm site is owned by Melbourne property investor and soft drink manufacturer Spiros Stamoulis.

Mr Stamoulis bought the site, and the adjoining Enterprise House building, for $46.5 million more than three years ago, with $8.5 million attributed to the vacant land. APN Property Group managing director Clive Appleton would not comment yesterday, but it is understood the APN board will decide on Friday whether to proceed with the purchase.

It would be APN Property's largest Melbourne project since 380 La Trobe Street, an office building of more than 22,620sqm that is anchored by the Australian Wheat Board. The AWB building project was undertaken with the Australian National University, which paid $10 million for the site in 2001.

Mr Stamoulis is believed to have given up on plans to develop the Collins Street land after failing to find a tenant willing to pre-commit to a new building in Melbourne's over-supplied office market. The land is currently used for car parking for about 180 vehicles.

Originally on one title, the overall site was sold to the failed Mainline Corporation more than 23 years ago. The Grollos bought it in 1981 for $5 million and onsold to the State Superannuation Board for $27.25 million in 1985. The two properties were sub-divided in 2002.

Premium Member
6,278 Posts
When I'm bored and Pine for Moist Undie News ....

I search through Situations Vacant in the construction Industry LOL
There's some great stuff and a few give aways , if you can guess what the developments are ! :)

High profile CBD practice
Leading Design Reputation
Key Technical Documentation Roles

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These roles require a high level of technical construction knowledge on large-scale projects and will be senior team roles that may have added responsibilities in terms of leading more junior team members.

Ideally you will have past exposure to commercial scale projects that have a high level of detailed resolution, as certain projects will have experimental use of materials for facades and public spaces.

Whilst we anticipate you will be busy in your current role, and not necessarily contemplating a move, we believe these opportunities would combine working in a highly regarded practice on quality large-scale projects, both locally and offshore, who are committed to good management and a positive working environment, and may offer something that is not part of your current role.

These positions are offered on either a permanent or long term contract basis, with security being very strong based on the volume and scale of projects both current and upcoming. Salary to $70 K, or hourly rates circa $40 per hour.

Apply now :cheers:

Champagne Socialist
12,700 Posts

Research pays the rent

By Marc Pallisco
May 24, 2006

A STRING of suburban office lease deals is easing concerns about the commercial success of Australia's first synchrotron.

In the past six months, several tenants from Australia's biotechnology sub-sector have committed to taking up office space near the synchrotron, with further demand anticipated once the facility opens.

The 70-metre-wide structure, which allows physicists to probe the structure of materials down to the level of atoms and molecules, is being built in Blackburn Road, across from Monash University's Clayton campus.

Once completed, it is expected to play an important part in medical research.

Colliers International chief executive eastern office Rob Joyes said tenants nearby included Biota, which would occupy 1000 square metres of space in a high-tech, refurbished building in Blackburn Road, Notting Hill.

Project development company HRL was close to committing to 4000 sq m of space in Mulgrave, east of the synchrotron.

Tenant demand for high-tech laboratory space is strong, according to Mr Joyes. "We have some 7000 square metres of active inquiry at the moment for laboratories in the precinct surrounding the synchrotron," he said.

Among inquirers is the CSIRO, already a Mulgrave tenant, which is seeking offices.

"I have no doubt speculatively built laboratory space would walk out the door if it were available today."

The Victorian Government started building the synchrotron in 2002.

In 2004, it sought private-sector funding for a $30 million shortfall and pushed the completion date out to next year.

DTZ director, Mount Waverley office, Richard O'Callaghan expects a solid increase in demand once the project is completed. "This will be led by pharmaceutical and research and development industries," Mr O'Callaghan said.

He said he expected demand to snowball once the facility opened, in much the same way it did following the opening of the Monash Science and Technology Park in 1992.

The State Opposition has criticised the synchrotron project, saying it has struggled to attract investment from the private sector.

4,277 Posts
Good to see positive growth in bio-tech sector in Melbourne. Doesn't Victoria have more Bio companies and labs then the rest of the country put together? Would seem like the governments commitment to the industry are paying off or at least starting to...

Agent of Change
8,043 Posts
Capital Gain
Marc Pallisco

27 May 2006
The Age

ASX space shuttle eyes off the Rialto

THE rumour mill is running rampant as to where the Australian Stock Exchange will set up shop. But one thing seems definite - it will almost certainly remain in Collins Street.

Last week, it was whispered the group was looking to move east, with 101 and 120 Collins Street the sites to watch.

KPMG House at 161 Collins Street - the only A-grade building on the ASX's supposed short list - also was mooted but with 4000 square-metre floor plates, it seemed unlikely it would share the deck with several other tenants.

This week, the Rialto is the talk about town for the group's 700 square metre floor plate requirement.

Agents worked hard to lease the large chunk of vacancy left by Mallesons Stephen Jaques almost a year ago but still have some 6000 square metres to fill, including a sky-rise office at level 45 of the south tower.

Resigning from podium levels across the road, however, the ASX has shown it likes to be close to the ground, and the lower floors of the north tower at the Rialto measure a suitable 800 square metres. All this and no great disruption to the configuration of the city's finance precinct.

Regardless, the ASX has the market in its favour. Half of Melbourne's premium-grade buildings are seeking tenants and bearing the title of "ASX headquarters" would certainly bring benefits. It might explain why such a small space requirement is such big news. A formal decision on the ASX move is expected to be made this week.

On the home stretch

Harness Racing Victoria is on the home stretch to having its own track - and one step closer to becoming a property developer. Earlier this month, the State Government approved HRV's request to borrow $29.1 million to help fund its $34.4 million project on the corner of Ferris Road and Western Highway in Melton.

The only other obstacle fronting HRV - the granting of a gaming licence - was resolved following a day-long meeting on Thursday and a go-ahead by the Victorian Commission for Gambling Regulation.

The move would see HRV own its harness racing track rather than be a tenant of the Moonee Valley Racing Club, and would bring Victoria into line with counterparts in NSW, South Australia, Queensland and Western Australia.

HRV chairman Neil Busse says that as well as a state-of-the art track, the new complex will incorporate a four-star motel, conference centre, function room, bistro, bar, TAB and gaming room over a 20-hectare site.

The HRV also has first dibs on an adjoining 80 hectares for future industrial development - something it may well consider once it reaps the financial benefits of racing at its own home.

HRV has also sorted out a new Flemington office once its Mount Alexander Road building is sold later this year. And the group will honour an agreement to hold 52 meetings a year at Moonee Valley until 2024.

Another winner

Leveraging off the HRV race meetings is the Quest group, which this week opened its 100th serviced-apartment complex on the former Moonee Valley racetrack car park in Moonee Ponds.

The group showed insight in recognising changing tourist accommodation needs when it was established 18 years ago. Its portfolio now includes serviced-apartment complexes throughout Australia, New Zealand and Fiji.

Serviced apartments have been a surprise choice by travellers over the past 10 years - a fact supported by the steady increase in occupancy, which has cut into the business of traditional hotel operators.

Strata suites, too, have become a favourite for many small private investors, which in turn provide groups such as Quest the cash flow to expand. Quest has experienced average revenue growth of 23 per cent during the past three years.

Coincidentally, the building accommodating the reception and function hall of Quest's first serviced-apartment complex in Brunswick Street, Fitzroy, is for sale in a campaign by Burgess Rawson.

Hotels make a booking

Look out, Adelphi, the northern end of Chapel Street will soon be Melbourne's newest celebrity mecca. It has been announced that the two sites recently bought at number 637 and 4 Daly Street will be transformed into two five-star boutique hotels.

Bought by the Deague family's Asian Pacific Building Corporation for $11 million, the 1500- and 770 -square-metre sites will be in the hands of architect Rothe Lowman. Planning is well under way.

The firm proposes slender, multi-storey buildings - one clad in a resin-based timber product; the other boasting white glass with digital art by local artists.

But William Deague said the real eye-catcher would be the proposed swimming pool, which will overhang Chapel Street.

The hotels are expected to open towards the end of next year.


Council tips its hand

It appears the bean counters at Stonnington City Council have been working overtime generating ways to fill their piggy bank. The latest item on the agenda is a 21,000 -square-metre site in South Yarra operating as the Surrey Road tip.

Council is in a position to consider options for the site after winning a 10-year legal battle opposing a substitute tip at Tooronga Road in Malvern, adjacent to the Coles Myer headquarters and the Tooronga Village Shopping Centre.

That choice of site, immediately north of the Tooronga train station, was met with confusion and controversy by local residents, especially in these days of bowing to the Melbourne 2030 bible and apparent issuing of high-density development permits to almost anyone who asks.

The Surrey Road site will be split almost equally in two. The smaller site of about 11,200 square metres, which council will spend up to $3.6 million to decontaminate, will be used as parkland.

The larger parcel of about 11,500 square metres is expected to be put to the market in August. Interested parties will receive a contamination report, paving the way for medium-density residential development in the blue-ribbon pocket connecting with Palermo Street off Chapel Street.

The Tooronga site will cater for a range of council services, including a new animal pound, as well as the SES and St John Ambulance. Until that facility opens in September 2007, the council will lease space off the new owner.

A similar arrangement is expected to occur in Osment Street, Armadale, with that tip another to be consolidated onto the new Tooronga site.

smooth operator
3,623 Posts
Discussion Starter · #9 ·
bla bla in todays fin review about devine wanting to challenge australand and multiplex in size/stature. they're moving into commercial/retail/hotel and have intentions of whipping out some big mixed use projects (bigger than vic point) in melbourne and queensland - currently looking for suitable sites

you have the article blabbs?

Agent of Change
8,043 Posts
Here ya go.

Designs to tower above the rest
Lisa Allen

29 May 2006
Australian Financial Review

Queensland's Devine wants to leapfrog from residential developer into the big league.

With plans for a funds management business as well as a move into commercial and industrial projects on the cards, the $117.5 million Devine is chasing larger, more diversified developers such as Mirvac, Stockland and Australand.

Devine's forward workbook has topped more than $1.5 billion and it is about to announce a $200 million mixed-use development in the Brisbane suburb of Hamilton, according to Queensland development sources.

Devine is poised to buy a development site in Hamilton's emerging Portside precinct for the project, which will include residential and retail, sources said. Company founder David Devine won't comment on the deal.

But in an interview with The Australian Financial Review, Mr Devine was more forthcoming about other aspects of the business. He said his aggressive buying spree in Queensland, Victoria and South Australia would generate more than $900 million in house and land development activity and he had set a three-year deadline to control a land bank of more than 5000 blocks spread through these three states.

The company is also moving into development areas outside residential such as commercial and industrial projects.

The company's move into commercial will be launched in Queensland and flow through to Victoria. Mr Devine has hired Jim Watson from Jones Lang LaSalle to scour both states for sites.

"Mixed-use development will play a big role in the future growth of planning of major cities," Mr Devine said. "We think high-rise could consist of a mix of retail, offices and hotel."

Mr Devine said the company's funds management business was in place. "The division is set up. We are currently identifying opportunities that will suit a funds management business."

Mr Devine said the company's new construction division, which is now ranked as the seventh largest Housing Industry Association builder - up from the 13th largest last year - is also performing.

"We established a high-rise construction division last year. It has created opportunities to look at developments that otherwise may not stack up. By having a vertically integrated structure of development, construction, funds management and marketing, we are able to look at more opportunities."

Devine's largest project is the $338 million Victoria Point Docklands development in Melbourne's central business district, comprising 447 apartments over 42 levels.

In its home state of Queensland, Devine will complete its Festival Towers apartment block in the Brisbane CBD by September. More than 390 units in the 401-unit apartment block have been sold.

At nearby Charlotte Towers, 402 of the 416 apartments on offer have sold, although construction won't be finished until September 2007.

At Casino Towers, also in the Brisbane CBD, Devine has sold all units in the 91-unit tower.

Devine has also recently secured development approval from the Gold Coast City Council for a 148 hectare, $500 million eco-resort at Currumbin comprising 530 low-rise dwellings. It bought a seven hectare site at Morayfield in Brisbane's north for a $20 million 20-lot development.

In South Australia, Devine is developing lots at Andrews Farm. In Victoria, it is building a $200 million, 44 hectare master-planned residential estate at Deer Park with 619 dwellings.

Devine recently reported a net profit after tax of $10.69 million for the half year to December 2005, returning a fully franked interim dividend of 4¢ per share. Revenue in the same period was $253.8 million.

The company recently appointed former Queensland treasurer Terry Mackenroth to its board.


· Devine is moving into commercial and industrial development.

· Sources say the company will announce a mixed-use development in Brisbane soon.

· Its largest project is the Victoria Point Docklands in Melbourne.

1,279 Posts
Melbourne Office tower ramblings, pics & misc. info - P2,5478,19374201%255E664,00.html
ASX not sold on stay-put option
Nicole Lindsay

THE Australian Stock Exchange is moving across Collins St to take up space at the Rialto.

The ASX yesterday said it would move in August.
The new office space, understood to be about 700 square metres will be on level 45 of the Rialto Towers.

ASX signage at 530 Collins St is being removed this week as part of the deal, a spokeswoman said.

However, the public will still be able to view the stock market movements at 530 Collins St until August.

"Alternative access to a market display facility will be available in the foyer of the new building however, details are still to be worked out," the spokeswomen said.

The ASX has whittled down the space it leased at 530 Collins St in the past few years. It controlled 12,000 sq m of space and has leased only a fraction of that in the new building.

It broke its lease at the GPT-owned building six years ahead of its March 2012 expiry date.

The early move will cost the ASX $7.2 million but it expects to save the money on smaller premises.

Also a peice in the paper about a news proposed $180 million tower at 171 Collins St.

27,000sq m. 23 Level mixed use tower.
Render looks a bit boring. Very campus style

Agent of Change
8,043 Posts
Ramada checks out of city site for $34m

6 June 2006
The Age

A HOTEL overlooking Flinders Street Station is set for an overhaul after selling for $34 million.

The Ramada Melbourne, at 270 Flinders Street, was sold to Property Funds Australia through Jones Lang LaSalle.

The deal will result in Ramada moving from its only CBD hotel, and the building leased to Citigate Melbourne for 10 years. Mirvac Hotels will manage and operate it under its Citigate Sebel brand, according to Property Funds Australia.

"We are very positive about the growth prospects for room rates in the Australian hotel market, including the Melbourne hotel market," Property Funds Australia managing director Chris Morton said.

"Further, there are also opportunities for improvement in this hotel through rebranding, intensive management and marketing."

The four-star hotel has 182 rooms and was redeveloped in 2002 and 2003 from its previous use as an office building. It was last sold for $4.65 million, in 1999.

Mark Durran, senior vice-president investment sales at Jones Lang LaSalle Hotels, said the Melbourne hotel market was improving and he expected more sales.

He said strong economic conditions, State Government support of tourism and the focus on special events and conventions in Melbourne were helping the market.

"It augurs well for increasing demand," he said.

· FKP Property Group has bought a $17.5 million industrial site at Campbellfield, to be named Metrolink Business Park.

FKP Victoria manager Jason Smith said the Melbourne industrial market was experiencing solid growth.

It was FKP's second industrial purchase this year, after a $15.5 million deal in Carrum Downs.

Facelift for a faded gem
Peter Taylor

6 June 2006

QUEENSLAND Investment Corporation is considering a sweeping upgrade for Collins St landmark Nauru House.

Melbourne architectural firm Denton Corker Marshall is briefing the Queensland State Government-owned group on redevelopment options for the tower, at 80 Collins St.

The corporation has hired the firm as it evaluates how best to fill the hole left after the pending departure of key tenants.

Anchor tenant, the Department of Infrastructure, which has a 25,000sq m lease with a year to run, is moving next door to SX1 while the Industrial Relations Commission will leave its 10,000sq m within months.

Jones Lang LaSalle agent Rainer Paterson said Denton Corker Marshall was costing upgrade options and would make a recommendation within weeks.

"We do have another tenant looking at the building, so that will play a crucial part in deciding what we do with the development," Ms Paterson said.

"We are certainly at that crucial stage of finalising the proposed development. Obviously if the cost is too huge, then QIC will have to re-evaluate proposals for the tower."

Ms Rainer would not put a price on the likely bill if the corporation opted for a large-scale upgrade.

But industry sources said the figure was likely to top $70 million -- half the $140 million price the corporation paid the Nauru Government for the building in November 2004. The price was widely considered to be above market value at the time of the sale.

One source said given the sale price, the Queensland Investment Corporation would be eager to attract premium rental rates.

But the ageing nature of the building meant an exhaustive upgrade would be particularly expensive, as the building would then need to meet regulations that applied to new towers. "Once they do that you are just going to open up a can of worms," he said.

A partial refurbishment was more likely to avoid the extra expense, he said. Another source said the corporation was highly unlikely to put Nauru House "back on the market in its current condition".

Ms Rainer said the investment corporation was "evaluating every possibility".

The top two floors of 80 Collins St are vacant now, but it's believed a company is considering leasing almost 10,000sq m.

Ms Rainer declined to comment on the speculation but said electrical goods manufacturer NEC recently signed for almost 400sq m, "showing that the deals are still being done".

Melbourne's tallest tower when it was finished in 1977, 80 Collins St has a net lettable area of 50,600sq m.

The facade of the 52-storey building was restored in the early '90s and the foyer upgraded at a cost of $46 million.

The Nauru Government had owned landmark properties across Melbourne, including the neighbouring Southern Cross Hotel, the Queen Victoria development site and the former CUB site now owned by RMIT.

It had owned the Nauru House site for 33 years.

And as mentioned by AUboy in the other thread.

Tower plan for Paris end of city
Peter Taylor

6 June 2006

MACQUARIE Office Trust has unveiled plans for a $180 million tower after snaring the last major development site in the east end of Collins St.

As foreshadowed in the Herald Sun yesterday, the trust has bought heritage-listed 171 Collins St in a $27.6 million deal.

Macquarie is planning a 27,000sq m office and retail building, but will keep the historic eight-level building at the front of the site.

The tower project is expected to start by July next year and take about two years.

Announcing the development, chief executive Simon Jones said the tower would be premium grade with strong environmental credentials.

The project was likely to deliver a return to investors of 15 to 20 per cent, he said.

A 23-level tower with office, residential and retail space proposed by vendors Mayfair Collins has development approval.

But Macquarie would "seek improvements" to the permit, the company said in a statement to the Australian Stock Exchange.

The residential component has been dropped from plans.

Vinci Partners director and commercial agent Frank Vinci said negotiations for the sale had been in play since late last year.

"We had to secure three other titles that adjoin the main property," Mr Vinci said.

Mayfair Collins, a private company, only owned the ground floor of the four-level adjoining building at 14 Watson Place that Macquarie also wanted, he said.

That building was part of the package sold yesterday.

"What Macquarie has picked up is the last remaining Paris-end development site," Mr Vinci said.

The site area is 2958sq m.

Knight Frank leasing agent Mark Rasmussen said Macquarie was "getting it right again".

He expects the trust to build speculatively if it is unable to secure a major tenancy pre-commitment.

"It's going to be hitting the market at a time when there's going to be a lack of new supply," he said.

"They have taken the view that that is the time to deliver it to the market and I think everyone else agrees with them. It's just that no-one else has the guts to do it."

To accommodate 27,000sq m, the new building is likely to be 18-20 storeys tall, Mr Rasmussen said.

Approval for the 23-level mixed-use tower was granted in 2004 after a Supreme Court battle waged by the then owners of neighbouring 161 Collins St, the Liberman family.

Macquarie spokeswoman Yolanda Beattie said the trust did not expect any more planning obstacles.

Once home to the Mayfair Cinema, developers trialled high-end retail at 171 Collins St in the 1980s and early 1990s with the Shop of Shops and Figgins Diorama.

The experiment failed despite the building's location opposite prestigious department store Georges, now also closed.

55 Posts
Don't know if this one has been posted already. If it is sorry...

The Age

Grollo pitches next big gig to Murphia
June 7, 2006
Page 1 of 2 | Single page

THE next major Melbourne landmark to get the bold and brash Grocon treatment — if it is approved — will be the Jolimont redevelopment, over the train tracks behind Federation Square.

Speaking at the Irish-Australian Chamber of Commerce lunch, Daniel Grollo said the company was chomping at the bit for its next big gig following the high-profile completion of the MCG and Eureka Tower. The Murphia in the crowd were queueing up to push business cards into his hands and generate some business for the traditional paddy builder.

But Grollo admitted that within 10 years he expected somebody else to go higher than the Eureka Tower's 300 metres of residential development.

High-flying Alan Joyce from Jetstar is the next man on the Paddy's business lunch hit list. The Irish have always aimed for the stars, even if they have often ended up shovelling the mud to build the Towers of Babel.

smooth operator
3,623 Posts
Discussion Starter · #14 ·
>>>>Office rents tumble
Peter Taylor

MELBOURNE'S three-year office tower construction frenzy has driven rents dramatically lower, new research indicates.

But the city is primed for further construction despite bargain rental rates, with an abundance of development sites ensuring low project costs.

Real rents are down 33 per cent since 1990, just before the market peak, according to research released yesterday by commercial agents Jones Lang LaSalle.

Without accounting for inflation, the indicative median gross rent for prime office space had fallen from $344 a sq m to $331 a sq m, research manager Darren Krakowiak said.

"Rents in the past three or four years have been driven downwards by the expectation of oversupply," Mr Krakowiak said.

But the market had "shown it has been resilient to this level of supply in the past few years", he said.

Developers had generally secured pre-commitments rather than building speculatively, Mr Krakowiak said.

"It's demand-led supply."

"While effective rents have fallen significantly due to new supply entering the market, this has generated widespread demand from "aspirational" small and mid-sized tenants.

"So the backfill space created in the development cycle has been absorbed."

The recent construction cycle has increased Melbourne's office space by 500,000 sq m, or 17 per cent, in just three years.

But it had barely dented supply, with major development sites available across the CBD and a copious supply of land at Docklands, Mr Krakowiak said.

He said the sites would accommodate development of a further 1 million sq m of office space.

Based on the historic absorption level of 60,000 sq m, that would supply the Melbourne market for 25 years.

"That said, I don't think it's going to take 25 years (to fill)," Mr Krakowiak said.

Docklands had given Melbourne a competitive advantage by keeping land values lower, ensuring lower development costs, he said.

Despite 140,000 sq m of space being completed in the first quarter of this year, Jones Lang LaSalle expects the vacancy rate to fall from the 10.4 per cent recorded the same quarter.

It was a statistical anomaly, "which is more related to the timing of construction completions than a reflection of the health of the market", Mr Krawkowiak said.

Among CBD sites, the Mazda dealership at 400 William St could accommodate a 59,000 sq m development, the agency believes.

There is also space for 55,000 sq m and 42,000 sq m at 565 Collins St and the second tower at the former Southern Cross Hotel site respectively, and several other potential development sites.

>>>>Office rents static since 1990: Lasalle
Maurice Dunlevy
June 08, 2006
...........JLL estimates Melbourne's abundant development sites could house a further 1million sqm of office space in the city-Docklands area, or the equivalent of 25 years of demand based on historic levels.

The new pipeline of office space includes 59,000sqm at the Mazda site at 400 William Street, 55,000sqm at 565 Collins Street and 42,000sqm at the former Southern Cross site.

Other potential sites include 171 Collins Street, bought this week by Macquarie Office Fund for a 27,000sqm tower, the nearby Scots' Church site in Collins Street and Spencer Street's former Savoy Tavern, once owned by the Government of Nauru.

Melbourne-based tenant representative Graham Dickson, from Dickson Partners, said few Melbourne landlords would disagree that rents had not risen in real terms in 16 years.

However, Sydney tenant representative Geoffrey Learmonth said he found it difficult to accept on face value that there had been virtually no movement in effective rental levels over a 16-year period.

JLL said the other side of the ledger was tenants looking for 233,000sqm of office space, led by ANZ (80,000sqm) and Victoria Police (70,000sqm).

Despite 140,000sqm of space being completed in the first quarter of this year, JLL believes rents are starting to improve and has predicted that the current office vacancy rate should fall to around 9 per cent by the end of the year.

initial concept for 171 Collins st

7,796 Posts
I think it's time for the State Government to start applying a much higher standard of design for new office buildings in Melbourne.

Office rentals are dirt cheap, there is no real shortage of supply of office space or devedlopment sites so there is no reason why developers should get away with buildings like the ones that have gone up over the past five years.

1,703 Posts
Unfortunately the fact that rents are dirt cheap means that developers are less willing to spend big for innovative and expensive designs, as they won't get a big enough return on their investment.

7,796 Posts
The previously approved tower at 171 Collins Street was 75m tall, this was later amended to 60 metres but they shouldn't have any problem going back up to 75m. Any higher than that would be difficult due to heritage issues.
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