New lease on life for Melbournes older commercial buildings
New lease on life for Melbourne's older commercial buildings
| 16 February 2017
A growing number of Melbourne’s older commercial buildings are getting a new lease on life amid a rise in demand for health and child care services.
In two of the latest deals, Family Doctor Group has taken over an older style building in Hawthorn after striking a 1,952sqm lease agreement.
Kool Kidz has meanwhile leased a 2,000sqm facility in Notting Hill as it continues to expand its chain of Melbourne child care centres.
Both leases were negotiated by CBRE’s Gianni Macdonald, who said the deals highlighted an increasingly common market trend.
“There is rising interest in Melbourne’s older commercial buildings, which are being renovated and transformed into social infrastructure facilities,” Mr Macdonald said.
“Demand for child care and medical centres in metropolitan Melbourne has been significant with landlords keen to take advantage of the long terms leases they can secure from this style of operator.”
Family Doctor Group is a network of GP owned and operated medical and dental practices, with 10 facilities in Victoria and New South Wales.
The expanding group has leased 455 Auburn Road, Hawthorn after outgrowing one of its existing buildings in the neighbouring suburb of Camberwell.
It has signed a 20-year lease deal for the Hawthorn facility, paying an initial rent of $300/sqm.
The second lease involves the expanding Kool Kidz child care chain, which has taken a 15-year lease over 680 Blackburn Road, Notting Hill.
It is the latest facility for Kool Kidz, which operates seven child care and kindergarten facilities in Docklands, Mill Park, Ravenhall, Preston, Tarneit and Rowville.
The Notting Hill building has been completely overhauled to capitalise on its prominent location, minutes from the M1 Monash Freeway and Eastlink and directly opposite Monash University.
It has been leased to Kool Kidz at a rental of $230/sqm.
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