Forget Collins Street!
Melbourne’s smart corporates are heading to Lonsdale Street, with more than 100,000 square metres of prime office space being leased over the past 12 months in the one-time “poor cousin” to Collins Street.
According to Knight Frank’s Mark Rasmussen a number of major employers led by corporates, Sensis and BHP Billiton, have been lured to more cost effective space in Lonsdale Street because “it is equal, if not better” to offices in the more expensive parts of Melbourne’s CBD.
Rasmussen says the increasing number of pre-commitments in Lonsdale Street demonstrates a trend of tenants willing to consider new opportunities away from a traditional Collins Street address.
Joining BHP Billiton in the shift to Lonsdale Street are Workcover Authority, Department of Human Services, GHD and the Migration Review Tribunal.
“It is becoming a procession away from the traditional office precincts,” says Rasmussen.
“Lonsdale Street is Melbourne’s new home for the smart money.”
Grocon’s QV Project, ISPT’s Urban Workshop at 50 Lonsdale Street, REST’s 460 Lonsdale Street and others such as the GPT’s Melbourne Central refurbishment, have transformed market perception and acceptance of this precinct.
The new standards set by the Urban Workshop at 50 Lonsdale Street, and the QV Project’s 180 and 222 Lonsdale Street office towers have “raised the bar” for many other developers wishing to compete.
He said whilst incorporating the latest in building services and environmentally sustainable design, the new developments will respond to the financial requirements of many of Melbourne’s major corporates as well as delivering buildings which will help to attract and retain staff by providing an extensive range of lifestyle facilities as well as a comfortable and efficient place to work.
Rasmussen said his leasing team had negotiated more than 80,000 square metres of pre-commitments to office tenants in Lonsdale St. during the last 12 months.
He expects the increased level of activity in Lonsdale Street to continue.
Rasmussen concluded that interest in the remaining space available at the QV project and the refurbishment of 150 Lonsdale Street next door was very strong and further successful lettings were expected to be announced shortly. He said one of the major drivers of Lonsdale Street was rentals with space available at around $200 sqm compared to around $300 sqm for Collins Street.
