A trendy furniture retailer has rented the sixth floor of an office for a showroom – in what could be a new avenue within Melbourne’s city fringe commercial leasing market.
Cosh Living has committed to 628 square metres at Bayley Stuart’s newly completed 600 Church Street, which replaced the Nuttelex factory, in east Cremorne.
The tenancy includes access to the rooftop – three floors above – which is activated with gardens and soon, seasonal outdoor furniture for sale.
The destination retailer, which takes appointments from customers, had been based for 12 years at a larger showroom in nearby Collingwood at 7-13 Rupert St.
Destination retailers don’t always need the ground floor exposure
Colliers International’s Ash Dean described the Cosh agreement at Cremorne as a new concept – but which could become more common with traditional ground floor showrooms in the inner-city a commodity.
The agent would not disclose the rent achieved at 600 Church St, but space has been asking about $600, per sqm, pa, net.
Ground floor area of this quality in the pocket costs at least 30 per cent more (story continues below).
Bayley Stuart has 14pc of 600 Church Street office to fill
It paid Icon $50 million for the 5799 sqm office on a funds-through basis, in 2018.
Since that time, the agents have secured Axil Coffee Roasters, Credabl, Domain, Hoyts and Valmorgan as occupiers.
At the south west corner of Balmain Street the asset is about four blocks to South Yarra and three kilometres from the city.
Eight months ago Bayley Stuart paid $50m for another Cremorne office on a funds through basis, at 1-11 Gordon St.