The 5300 square metre, 4-level property is one of several in the eastern suburbs whereby construction commenced without a tenant pre-commitment.
Office tenant demand has outstripped supply in the eastern suburbs for more than two years, contributing to rising rents and dropping vacancy, local agents say.
CEO plans to capitalise on that newfound demand, by managing 36 premium grade office suites, plus additional board and meeting rooms for its tenants, which may occupy the space anywhere from between a day to several years.
The site is owned by the Charles Lloyd Property Group, and being built by boutique builder Ravida, which launched a commercial construction arm two years ago, to complement its luxury home business.
Ravida project development manager Bo Ronngard said construction of the office building at 203 – 205 Blackburn Road is scheduled for July 2008.
The CEO lease is the latest in a string activity for serviced office operators, which have increased in popularity in Melbourne and Sydney over the last few years.
Last year, Sydney-based serviced operator Christie Corporate services paid $17.8 million for a vacant 11-storey office building at the corner of Collins and William Streets in the CBD. It plans to refurbish the 2950 square metre building into another serviced office project to complement its 470 Collins Street building, a little further up the street.
Serviced office operators make their money leasing ready to use office suites to typically short term tenants. Furniture and office artwork is included in the lease, as is access to boardrooms and lobby areas and administration staff.