Federal government seeks Melbourne office

Medibank recently precommitted to a quarter of 699 Collins Street.

The federal government has quietly issued a major Melbourne office leasing requirement.

The Commonwealth is seeking between 20,000-25,000 square metres of A-grade space within five kilometres of the GPO – meaning Abbotsford, Cremorne, Footscray, St Kilda Road and South Yarra could be considered.

However, given a key condition to be close to the headquarters of major financial, telecommunications, and technology companies, a CBD or city-fringe location is more likely.

Access to childcare, medical facilities and schools is also sought.

The tenant needs at least 100 car parks too.

Spoilt for choice

The government is prepared to sign for an initial 10 years with a five year option.

The preference is for an entire building however it would consider occupying part of an office provided there are contiguous floors with internal staircases.

Tenders are sought by tomorrow with handover expected in March (story continues below).

JLL’s Brett Weeks is representing the tenant.

The requirement comes nine weeks since Medibank pre-committed to 17,500 sqm of a Docklands office which was immediately after sold to the National Pension Service of Korea for $1.2 billion.

Earlier this month, the Property Council of Australia released its Office Market Report putting Melbourne CBD vacancy at 10.4 per cent.

Sublease space has more than doubled since January.

New buildings set to be delivered in the next six months include 405 Bourke Street (66,000 sqm), 1000 La Trobe St (artist’s impression, top, with 33,000 sqm) and 100 Queen St (30,353 sqm).

More to come.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.