This article is from the Australian Property Journal archive
THE Royal Freemasons has signed a long term lease at 580 St Kilda Rd, owned by Nikos Property Group.
Colliers International’s director of office leasing Ben McKendry negotiated the seven-year lease for 914 sqm on Level 7, commencing July 1, at $275 per sqm.
McKendry said the building has undergone significant refurbishment, which was a significant factor in securing Freemasons as a tenant.
“Through these refurbishments and upgrades, this building has adapted to the changing St Kilda Rd landscape. It now offers onsite childcare and a convenience store which services the growing residential population and the established office tenants in the area,” Nikos Property Group Ari Singer said.
McKendry said the St Kilda Rd office market continued to perform well, with strong leasing activity across a number of buildings.
“Owners who invest in their buildings are reaping the rewards and are well-positioned to see good rental growth as the market tightens due to withdrawals and leasing activity.”
According to Colliers, the vacancy rate in the St Kilda Rd precinct increased slightly from 10.8% in July 2013 to 11.4% in January 2014, primarily as the result of some larger tenant moves out of the area.
“From late 2014 onwards, we expect a dramatic turnaround in vacancy in St Kilda Rd. This is also due to the number of buildings in both St Kilda Rd and Queens Rd that are earmarked to be converted to residential developments.” McKendry said.
Property Review
