This article is from the Australian Property Journal archive
GOLDFIELDS and JLL have backed the co-working sector as Australia emerges from the pandemic, partnering up to launch a new offering within a brand-new $300 million South Yarra office tower.
Developed by Goldfields, the A-grade 627 Chapel Street tower will be home to The Loft, spanning 3,243 sqm over three floors. The first floor is set to open in May.
The co-working space will feature flexible desk options, dedicated desk and office space, community areas, and phone booths and focus rooms, as well as offering members access to amenities across the entire tower. They include a rooftop bar and restaurant, and end-of-trip facilities including private bathrooms and saunas, and technology features such as contactless entry, wireless car and phone chargers, smart showers, smart destination lifts and a smart locker system.
“As enquiries and occupancy rates in the city-fringe office market increase post-pandemic, we’re excited to provide a unique, premium and flexible offering in South Yarra, without the financial commitment traditionally required for a building of this calibre,” Goldfields CEO Lachlan Thompson said.
Melbourne’s fringe office leasing market recorded a fourth consecutive quarter of positive net absorption, according to JLL. Property Council data showed office occupancy in the CBD remained at just 15% in February, just ahead of work-from-home and mask mandates being lifted, as landlords and employees consider how best to attract workers back to city offices.
Co-working faced an existential crisis during the height of the pandemic, with workers hesitant to share space with others. However, there may be a place for flexible working spaces in the post-pandemic office world. Less than 15% of Australian workers want to be in the office every day or nearly every day, while around 50% would prefer one to four days a week of working from the office, Cushman & Wakefield data shows, providing an opportunity for co-working space to complement a major office location.
Commenting on the announcement, Tashi Dorjee, JLL’s head of flex space, Australia and New Zealand, noted that demand for pre-built offices, lease flexibility and collaborative spaces is increasing in the post-pandemic workplace environment.
“As well as the self-employed and smaller emerging creative outfits seeking flexibility, we’re now seeing more established businesses looking for offsite project space. Flexible rental returns and spaces that are adaptable for workshops, casual and formal meetings, and hosting events, are becoming more popular,” he said.
JLL and Colliers are the exclusively appointed leasing agents of 627 Chapel Street.
