This article is from the Australian Property Journal archive
VICTORIAN developer Hirsch & Faigen has secured global co-working space operator The Hive to anchor a $70 million office development in Melbourne’s inner east, as the sub-sector shows strong signs of activity in the flexible working environment.
The Hive, which recently merged with Common Ground and The Cluster to form The Flexi Group, is a collection of flexible workspace brands with spaces in 12 cities across the Asia Pacific and Australia. The new site at 222 Hoddle Street in Abbotsford will be the rapidly company’s third for Australia – all of them located in Melbourne, following Hive Collingwood and The Cluster in the CBD.
The Hive has signed a 15 year lease for 2,285 sqm within Hirsch & Fagan’s 10-storey, 7,350 sqm North Helm development, which has been designed to deliver a flexible office environment through co-working spaces, fully customisable offices, and private terraces, and is poised to become the suburb’s first five-star Green Star rated office building.
The deal arrives as co-working appears to weather the challenges of working from home arrangement better than the traditional office sector. Co-working’s shorter-term leases have allowed businesses to avoid committing to long lease terms while they assess their space requirements at a time of uncertainty, as well as fit-outs.
Colliers data shows the co-working spaces have grown from 1.7% of Melbourne’s total office stock in 2019 to 4.5%, while in Sydney it has lifted from 1% to 2.8%. In the broader market, the return to the office remained at a standstill in August, as workers sought to avoid the final phase of the Omicron and flu waves, while a preference for greater flexibility including working from home was cited a major driver of occupancy levels.
“The Australian market, and particularly Melbourne where we have an established footprint, is primed for further growth in the co-working space as businesses adapt to an increasingly dynamic environment where flexibility has become critical to growth,” said Flexi Group CEO, Chris Edwards.
Hirsch & Faigen, a company with ties to United Petroleum co-founder Eddie Hirsch, engaged architecture and design studio Architectus to create a design for the project.
“222 Hoddle Street is specifically designed for forward-thinking tenants by providing flexible workspaces that can be readily adapted for a wide range of industries while providing premium offices that are mindful of health, wellness and sustainability,” said Hirsch & Faigen’s Principal, Ben Hirsch.
“The prime city fringe location in Abbotsford is close to cafés, bars, restaurants, and other amenities, and within walking distance of transport routes and bike lanes.”
He said 222 Hoddle has a Walkscore of 95 out of 100.
The project is currently under construction with completion scheduled for June next year.
