Melbourne, 29 March 2016 – National building firm ADCO Constructions has inked a new lease on 1,525sqm in South Melbourne, amid an influx of suburban office occupiers eyeing up space in the city fringe.
ADCO Constructions, which is relocating from its Hawthorn premises, is the latest occupier to take up space in the city fringe, signing a seven-year lease on level nine of 75 Dorcas Street.
The deal was negotiated by CBRE Office Services Director, Anthony Park, in conjunction with Colliers International’s Ben McKendry. The rental ranged from $360 per square metre net to $400 per square metre net.
Mr Park said the property’s prominent position in the city fringe was a key factor underpinning the deal.
“We have seen a number of suburban occupiers taking space in the fringe suburbs of Melbourne, as they seek better access to transport and amenity – ADCO Constructions is another example of this,” Mr Park said.
“ADCO was looking for a property that would allow it to strategically position its business for future growth, with this new space providing sweeping views of the city, in addition to a convenient location close to the CBD with excellent transport linkeages.”
The lease also includes 50 car parking spaces in the building’s large basement car park.
The prime A-grade space at 75 Dorcas Street has become one of South Melbourne’s leading business destinations, with the lease following a large deal with Mondelez (formerly Kraft), which committed to circa 4,600sqm in the building late last year.
ANZ also recently renewed its lease on circa 14,000sqm, having redcued its footprint in the building.
“This building has been occupied by ANZ as its sole office tenant since its inception in 2002, so as part of the leasing strategy it was decided that the opportunity was ripe to reposition the building to take it into a new era of office accommodation,” Mr McKendry said.
“It was already a relatively new building, which is a rarity in the city fringe office market in its own right. However, it is now at the next level with recent refurbishment to the base building services, entry lobbies and end of trip facilities.
“It is now a best-in-class building offering city fringe tenants something they don’t often have access to in this market – a modern, near-new prime A-grade building reminiscent of a CBD, Southbank or Docklands prime A-grade building.”
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