This article is from the Australian Property Journal archive
INDUSTRY superannuation fund-backed property investor ISPT has leased 40% of its $665 million A-grade office and mixed-use Melbourne CBD asset 500 Bourke, following long term deals with national law firms and business advisory firms.
Commercial law firm Holding Redlich, which has offices in Sydney, Canberra, Brisbane and Cairns, has signed an 11-year lease across 3,945 sqm across three levels, while business advisory, accounting and assurance provider PKF has committed to 2,200 sqm in a 10-year deal.
The new tenants will join anchor tenant TAL, which was the first to commit back in July, alongside ISPT, which announced it would relocate its own Melbourne headquarters to 500 Bourke as part of the building’s transformation.
ISPT is aiming for 500 Bourke to operate entirely on renewable energy and has been carbon neutral from day one of construction, without the need for carbon offsets.
Completion of the $150 million transformation is scheduled for mid-2023.
“Holding Redlich and PKF’s commitment to 500 Bourke reaffirms how the transformational building is aligning with today’s business needs. By providing high-quality office space that prioritises brand new services, technology and market-leading amenity, an unrivalled tenant experience is guaranteed,” said ISPT’s general manager, office, Nicole Ward.
Designed by Fender Katsalidis, 500 Bourke offers 34 floors ranging from 1,272 sqm to 1,355 sqm, with the opportunity to create multi-level tenancies in the heart of the financial and legal precinct. Smaller-sized tenants can take up small plug-and-play suites.
500 Bourke will feature an airy external terrace oasis, a retail and dining piazza, and end-of-trip facilities with a wellness centre, creative outlets and community hub.
Landlords have been trying to attract tenants into the CBDs since COVID upended the traditional five-days-a-week model of coming into the office. Melbourne CBD office occupancy in February was just 47%, according to the Property Council, as the city’s recovery from multiple COVID lockdowns continued to lag other states’; Victorian Chamber of Commerce and Industry data shows almost three-quarters of Melbourne CBD of workers attend the office two to three days a week.
“500 Bourke is a prime example of an offering tenants have been waiting for. The location is ideal, particularly with the new lifestyle precinct, and the fresh slate of a total internal redesign means that the spaces are considered for the office workers of 2023 and beyond,” Tony Landrigan, national director at Colliers said.
Property Council research revealed Melbourne’s office vacancy increased from 12.9% to 13.8% in the six months to January. Among recent pre-commitments have been Allianz Australia taking 6,500 sqm within Charter Hall’s $1.5 billion 555 Collins Street twin tower project, which will be anchored by retail behemoth Amazon.
“The Melbourne team at Holding Redlich is excited to be a part of the new 500 Bourke community. 500 Bourke is a landmark building reinvented to cater to our needs now and into the future,” Joel Lentin, chief operating officer at Holding Redlich said.
“The transformed 500 Bourke is a perfect fit for PKF in Melbourne. The modern design and integrated technology will allow us to work more efficiently in a space that is in keeping with the ethics and values of our people. It’s an exciting and positive step for us and our clients,” Timothy Bow, managing partner at PKF said.
