This article is from the Australian Property Journal archive
DEMAND for high quality creative office space in the Melbourne CBD has kickstarted a wave of redevelopment of older heritage buildings.
Two heritage buildings at 108 Elizabeth St, which have been in one family for over 30 years, have completed a two-year project of stripping them back to a base shell and undertaking a complete refurbishment. Links between the two buildings have been added to allow for the creation of shared services and lifts, and all services and internal finishes renovated and upgraded.
The property has 1,520 sqm over five floors and is being offered for lease as a whole building opportunity or as individual whole floor suites through Colliers’ Adam Davy and Milly Stockdale in conjunction with Allard Shelton’s Joseph Walton.
Davy said an increasing number of landlords are turning to renovation and redevelopment in a bid to capitalise on the growing demand for creative space and in turn, increase the rental returns in their buildings.
“It wasn’t as feasible for building owners to do this for a long time, but there has been so much growth in the number of businesses who are looking for office space with a difference that it is now an attractive option.
“These tenants like the character feel of older buildings and don’t need a traditional office configuration, which provides landlords with the opportunity to reposition their properties for the future.”
At 325 Flinders Ln, Davy and colleague Zak Seccull recently leased two refurbished creative spaces with large windows, high ceilings and polished timber floors within a month. A 228 sqm office on level two was leased for five years to interior design and fit-out business Valmont at a gross rate of $720 per sqm, while high performance boutique fitness company Maddox Fit took 360 sqm on the ground level at a gross rate of $680 per sqm for five years.
Stockdale and Seccull also leased a fully fitted creative office space of 414 sqm, the whole of level six, at 18 Oliver Ln to Creativemass, at a net rate of $690 per sqm on a three-year term.
