Commonwealth Government Leases Arkana Building, Dandenong

The 7-level building will provide the suburb’s first new lick of office space in about 20 years, and is an important piece in the $1.3 billion revitalisation of the tired Dandenong Central Activity District.

It’s believed the government will use the A-grade offices to accommodate staff presently based in other parts of Dandenong, however this could not be confirmed.

Located between the Dandenong train station, the Lonsdale Street shopping strip and the Dandenong Plaza and Market, the Arkana site has street frontage to three of Dandenong’s busiest streets, the Princes Highway, Foster and Thomas streets.

Toorak-based developer Deal Corporation has branded the office building Arkana, in recognition of Arkana Timber which occupied the site for more than 60 years. The new building will also include 56 serviced apartment suites, to be managed by the Punt Hill Group.

Jones Lang LaSalle manager, Melbourne leasing, Richard Norman is leasing the building with Cameron Industrial Commercial.

Mr Norman says he expects Dandenong to become an important commercial centre, as demand for quality office space outside of the Melbourne CBD continues to rise.

The Arkana project is the first to be developed in line with the $1.3 billion “Revitalising Central Dandenong” plan, which is part of the Urban Master Plan for Central Dandenong, controlled by VicUrban.

The project has been reported as Melbourne’s second biggest revitalisation program after Docklands, and will involve an injection of almost $300 million by the State Government.

Over the last six months, VicUrban has compulsorily acquired about half the properties in a defined 7 hectare precinct between Lonsdale Street and the Dandenong railway station.

About 170 titles will be consolidated into 20 large parcels, which will make way for medium and high density developments with a minimum of five levels.

VicUrban will invest into four major infrastructure projects in the immediate vicinity of the Arkana site, including revitalizing the Lonsdale Street shopping strip and creating a City Walk from the train station to Dandenong Plaza.

The popular Dandenong Market – once rumoured to be moving from its long-time home at the corner of Cleeland and Clow streets, is undergoing a major renovation, while Cheltenham Road – one of the main thoroughfares connecting Dandenong to Eastlink – is being re-aligned.

A new bridge over George Street, which becomes Walker Street, is also under construction.

As part of the development of the area, the former Dandenong Saleyards which abuts the train station, will be redeveloped into the Metro Village 3175 residential community accommodating about 1000 townhouses and 3000 people.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of