A Hawthorn office building fully leased to Swinburne University is to be offered for sale, providing a sought-after opportunity for investors, developers and land bankers
The 2 Luton Lane building comprises 5,660sqm of office space and occupies a strategic site near the corner of Burwood and Glenferrie Roads.
CBRE Melbourne Middle Markets agents Scott Orchard, Josh Rutman, Mark Wizel and Lewis Tong together with Gorman Commercial’s Stephen Gorman and Jonathan McCormack will manage the international Expressions of Interest process.
The prominent four-level building is fully occupied by Swinburne University under a new five-year lease arrangement. The property, which includes a striking atrium entrance and basement car park, serves as the university’s head administration office.
Each campus-style office floor benefits from excellent access to natural light and views and can be configured in several formations to suit current and future occupants.
Mr Orchard said; “Large, well-proportioned holdings such a 2 Luton Lane rarely come to the market in Hawthorn. The opportunity to benefit from the strong existing income stream and explore other options for value-add opportunities and development in the future will prove highly attractive to a range of domestic and international purchasers.”
The property is directly accessible from both Glenferrie Road and Burwood Road and offers a desirable cul-de-sac location, which has underpinned its appeal to both the university and former occupiers Skilled Engineering and Telstra.
Mr Gorman said; “The needs of tenants are changing, particularly as the workforce continues to evolve. No longer are all groups looking for the high exposure main road for their business, particularly those in more progressive industries like technology and digital design. Buildings with large open floor plates, quality common areas and access to retail and transport by foot, car and bicycle will be best positioned for the future.”
Swinburne has become one of the central drivers of commerce and activity in Hawthorn’s office market, with several new buildings recently completed on the university’s main campus.
Due to its proximity to several affluent Melbourne suburbs, coupled with the shortage of quality sites available for commercial development, the Hawthorn office market has maintained a record of low vacancy for several years.
Tenant competition for available space remains strong, which has seen leasing incentives drop and rental rates continue to climb.
Several successful residential projects surround the property, giving credence to the future prospect of also redeveloping the site for residential or mixed-use accommodation subject to the relevant planning approvals.
Mr Orchard noted that some of Melbourne’s most active domestic and international developers had targeted Hawthorn for residential projects given the suburb’s strong track record for attracting owner occupiers at high prices.
Buyer interest over $50 million is anticipated, with the International Expressions of Interest campaign closing Wednesday 25th of September at 2:30pm.
The 2 Luton Lane building comprises 5,660sqm of office space and occupies a strategic site near the corner of Burwood and Glenferrie Roads.
CBRE Melbourne Middle Markets agents Scott Orchard, Josh Rutman, Mark Wizel and Lewis Tong together with Gorman Commercial’s Stephen Gorman and Jonathan McCormack will manage the international Expressions of Interest process.
The prominent four-level building is fully occupied by Swinburne University under a new five-year lease arrangement. The property, which includes a striking atrium entrance and basement car park, serves as the university’s head administration office.
Each campus-style office floor benefits from excellent access to natural light and views and can be configured in several formations to suit current and future occupants.
Mr Orchard said; “Large, well-proportioned holdings such a 2 Luton Lane rarely come to the market in Hawthorn. The opportunity to benefit from the strong existing income stream and explore other options for value-add opportunities and development in the future will prove highly attractive to a range of domestic and international purchasers.”
The property is directly accessible from both Glenferrie Road and Burwood Road and offers a desirable cul-de-sac location, which has underpinned its appeal to both the university and former occupiers Skilled Engineering and Telstra.
Mr Gorman said; “The needs of tenants are changing, particularly as the workforce continues to evolve. No longer are all groups looking for the high exposure main road for their business, particularly those in more progressive industries like technology and digital design. Buildings with large open floor plates, quality common areas and access to retail and transport by foot, car and bicycle will be best positioned for the future.”
Swinburne has become one of the central drivers of commerce and activity in Hawthorn’s office market, with several new buildings recently completed on the university’s main campus.
Due to its proximity to several affluent Melbourne suburbs, coupled with the shortage of quality sites available for commercial development, the Hawthorn office market has maintained a record of low vacancy for several years.
Tenant competition for available space remains strong, which has seen leasing incentives drop and rental rates continue to climb.
Several successful residential projects surround the property, giving credence to the future prospect of also redeveloping the site for residential or mixed-use accommodation subject to the relevant planning approvals.
Mr Orchard noted that some of Melbourne’s most active domestic and international developers had targeted Hawthorn for residential projects given the suburb’s strong track record for attracting owner occupiers at high prices.
Buyer interest over $50 million is anticipated, with the International Expressions of Interest campaign closing Wednesday 25th of September at 2:30pm.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
