Sources say CAE will lease the space – with a street frontage on Little Collins Street – as classrooms and offices. The school’s major campuses are in nearby Degraves Street and Flinders Lane.
The CAE space is within the walls of the building known as 271 Collins Street, long-time home to National Australia Bank, before its move to Docklands about five years ago.
Last year, Optus leased about 13,500 square metres at 271 Collins Street, filling a void left by the Australian Bureau of Statistics, which took a short term lease to house staff working on the 2006 Census.
Fitzroys is marketing 271 Collins Street for lease with Colliers International.
Across the Yarra River in Southbank, Cambridge International College has sub-leased 2,500 square metres of office space at 25 Queensbridge Street, from education service provider rival Carrick Institute.
Fitzroys leasing agent Rob Harrington said there has been consistent demand for CBD offices from educational groups catering primarily to international students.