This article is from the Australian Property Journal archive
STARBUCKS will move its offices to the heart of Melbourne’s buzzing inner north coffee scene, signing on as the first tenant in Hines’ T3 Collingwood development that will be the tallest timber building in Melbourne.
Starbucks Australia has signed an eight-year lease for a full floor totalling about 1,400 sqm. The store support office for the company is currently in Richmond, and will relocate to T3 in the middle of the year.
Rising 15 stories, T3 is Hines’ first mass timber office building in the Asia-Pacific.
“The design and sustainability features of T3 Collingwood reflect our values perfectly, and we’re excited to make this space our new home,” said Chris Garlick, chief executive officer at Starbucks Australia.
“Leasing a full floor at Hines’ remarkable timber building is an affirmation of our investment in a sustainable future and in the well-being of our partners (employees).”
Starbucks recently posted its profit in Australia since entering the market in 2000, reporting a $3.15 million profit for the 2023 financial year. It opened eight new locations in 2023 and now has 71 stores across South East Queensland, NSW and Victoria, with a view to hitting 100 by next year, and employs about 1,500 people
The chain may be getting more attention from its billionaire owner Russell Withers after he recently sold his 750-store 7-Eleven network in Australia.
Colliers represents Hines on the leasing of the building. Colliers and Starbucks Australia brokered the deal directly.
Collingwood is a key part of Melbourne’s renowned café culture. Smith Street, the main dining and lifestyle precinct in the suburb, was named “Coolest Street in the World” in 2021 by influential global publication Time Out.
Collingwood has a fast-growing office market, with a number of recently completed and under construction developments to go with a swathe of residential builds. Collingwood accounted for the bulk of leasing activity in Melbourne’s city fringe markets in the first half of 2023, along with South Melbourne, with tenants attracted to the abundant retail amenities and easy transport access, according to Knight Frank.
Other companies in the locale include skin company Aesop, graphic design sensation Canva, vitamins giant Swisse Wellness, and apparel company Lululemon
Hines has also been touting T3’s green credentials as a major attraction.
David Warneford, country head of Australia and New Zealand at Hines, said, “The market for premium green buildings is robust in Australia, driven by an informed class of tenants who recognize the long-term value of placing themselves in these spaces”.
Hines acquired the Wellington Street site in 2019 for $28.5 million and was originally set to commence speculative construction in 2021, with the federal government’s Clean Energy Finance Corporation announcing in late 2022 it would invest $70 million in the project.
