Education industry technology firm Compass has leased Owens-Illinois’ former Asia Pacific headquarters, in Hawthorn – or West Hawthorn to some.
The standalone double storey building sits over a two level basement car park at 36-38 Burwood Road, opposite St James Park.
It had been seeking a tenant for over a year – the 1545 square metre area also available in halves.
Turnkey – it is designed with reception areas, board and meeting rooms of various sizes, glass-enclosed offices, storage, breakouts and open plan spaces with workstations.
The asking rent was $340 per sqm, pa, ex-incentives (which in this case are speculated to equal just over 20 per cent), and outgoings.
The 46 car parks sought $220 each per month.
JLL’s Mario Nobrega, Josh Tebb and Tim Sugar with GormanKelly’s Samuel Torrance and Will Kelly negotiated the deal after recently becoming involved in the marketing campaign.
Charter Keck Cramer’s Steve Kingston represented the landlord.
The 11-year old Compass, which will relocate from the multi-tenanted 74 Doncaster Road, Balwyn North, about an eight kilometre drive north east of 36-38 Burwood Rd, had Allard & Shelton’s Joe Walton acting on its behalf.
This part of Hawthorn is about five kilometres east of Melbourne.
Suburban office market showing resilience during COVID-19: agents
“The deal is another success story in the already fertile Boroondara office market which has defied the trend of depressed office markets throughout the year,” Mr Nobrega and Mr Tebb said.
The region “has shown surprising resilience during the COVID-19 pandemic with several medium to large office deals being completed…to date,” they added (story continues below).
“Tenants are viewing this…as a fantastic opportunity and a real flight to quality through the high quality buildings on offer and the generally more affordable rent and amenities…in these areas.
“Compass views the move into…Hawthorn…as a great addition to the quality work life of the staff as the office is best described as campus style offering all employees the ease of coming…on select days during the week”.
Recent standalone office deals
The Hawthorn deal comes three months after a long-vacant, high quality 6296 sqm standalone office vacated by The Good Guys at Essendon Fields found a tenant – Serco – a lease driven by COVID-19 conditions.
It was also turnkey.
Last month Epson announced it would move from a multi-level and tenanted headquarters to a double storey one at 90 Camberwell Rd, Hawthorn East.
That 630 sqm office failed to find favour earlier this year, even when it was offered in parts.
In the months following COVID-19, however, the marketing agents said two groups contested, both with plans to occupy it alone.
Following that rental agreement, Forza Capital sold the asset for $6m (it paid $4.6m in 2018 before undertaking a renovation).
Last week Caprice leased 2400 sqm at 380 City Road, South Melbourne ahead of its outgoing rented headquarters being redeveloped.
Like Hawthorn East, this building is standalone.
In addition it was turnkey.