Cheap Rents Drive St Kilda Road Office Leasing Activity

Colliers International leasing agent Ben Christie said St Kilda Road was a logical choice for Fujitsu’s requirement “because it met the needs of both business units in a middle ground location.”

Elsewhere in the boulevard, at 484 St Kilda Road, engineering firm McDermott Industries has leased 2742 square metres of upper level space while smaller tenant Polk has leased 400 square metres in deals negotiated by CB Richard Ellis’ Grant Tinker and Thorburn Commercial’s Kenny Thorburn.

CBRE has leased a further 750 square metres to Aioi Insurance, at 390 St Kilda Road, while at 468 St Kilda Road, the agency has conjunctionally leased 906 square metres to Sure Fire Systems with Colliers International.

Rents in all cases are speculated at between $230 and $260 per square metre, per annum.

Property Council of Australia figures released earlier this year showed office vacancy levels in St Kilda Road surged to 11.3 per cent – and is at its highest since June 2004.

Continued conversion of St Kilda Road office space, to apartments, is expected to reduce St Kilda Road’s office vacancy levels, but the market is now cheaper to occupy than other major markets in Southbank, Docklands, Hawthorn and even some offices in Box Hill.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco

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