Melbourne, 05 August 2015 – Two new tenants have been secured for South Melbourne’s landmark 60 Albert Road tower, removing 800sqm of vacant space.
Bi Worldwide and Optum Health & Technology have leased 350sqm and 450sqm of space respectively – taking out all of level 2. The deals were negotiated by CBRE’s Josh Jennings and Anthony Park.
The Albert Road tower was purchased late last year by Prime Value Asset Management.
Mr Park said the new leases continued a steady stream of activity within the building following a major refurbishment of a number of floors. Over 19 new tenants have secured space in the building over the past 12 months.
Mr Park said stock withdrawals such as that of 499 St Kilda Road and 412 St Kilda Road were having a positive impact on the B grade sector of the St Kilda Road/South Melbourne market as highlighted by the recent activity in 60 Albert Road.
“B grade assets that are well presented are performing extremely well given the lack of A grade space currently available in and around the St Kilda Road precinct,” Mr Park said.
“This has led to a noticeable increase in face rents and a lowering of incentives.”
In the case of 60 Albert Road, both tenants are paying rentals in the high $200’s net, with Bi Worldwide having signed for a five year lease and Optum Health committing to a three year lease.
Mr Park said both tenants were relocating from other buildings in the precinct and had been attracted to 60 Albert Road as a result of the recent refurbishment.
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