Developers Gus Cooper and Michael Gannon have applied to replace one of Cremorne’s largest industrial properties with two offices and a public plaza.
The application for 68-88 Green Street, 2.5 kilometres east of Melbourne , will contain 11,513 square metres of area – c1004 sqm which will be retail.
It is also designed with 105 car parks and 160 bicycle spaces.
The Bates Smart project – one structure of 10 levels and the other rising four – will include occupant-only rooftop gardens, one penned by landscape gardener Jack Merlo.
These commercial buildings will wrap around a 202 sqm open space at the end of Adelaide St.
The 2868 sqm rectangular site making way for the development has 128 metres of frontage to both Green St and the train line between South Yarra and Richmond stations.
Instead of incorporating existing warehouses, Mr Cooper and Mr Gannon’s Cremorne Properties, via a registered company, 88 Green Pty Ltd, intend to create an industrial look with a new structure, using red-bricks, masonry screens and off-form concrete.
Contemporary offices would rise in the airspace over the replica factory.
The application, being reviewed by council, comes almost two years since the developer pre-committed Seek to a prominent and distinctive seven-level, 19,300 sqm office, under construction at nearby 60-88 Cremorne St.
Described by sales and leasing agents as “the country’s hottest office market”, Cremorne A-grade commercial space regularly rents for more than $500 per sqm, per annum.
This puts the precinct in a mix with South Melbourne and South Yarra as Melbourne’s most expensive outside of the CBD and Southbank.
Last September, we reported the sale of a Stephenson Street site in the eastern suburb, pricing land at c$13,000 per sqm.
Elsewhere in the area, MYOB pre-committed to an office, now under construction at 17-21 Harcourt Parade, abutting the Monash Freeway (story continues below).
The developer of that workplace, Caydon, sold this yet-to-be-completed office investment to AXA Investment Managers last September.
Zig Inge Group is another builder in Cremorne – behind a seven-storey office in the airspace of a former Rosella factory at 57-61 Balmain St. Plumber Reece is part pre-committed.
CostaFox is also proposing an eight-floor, 5465 sqm commercial strata project at 1-11 Gordon St.
It has earmarked a similar sized redevelopment for a site at 22-26 Gordon St, which it acquired for $11.5m last April.
Other developers proposing offices in the area include:
- Alfasi Property, with an 11-level, 18,000 sqm building at 506-508 Church St, Cremorne;
- Peregrine Projects, with a 10,500 sqm complex at 175 Burnley St, Richmond, currently for lease via Colliers International and CBRE;
- Salta Properties, with a 25,000 sqm proposal at 459-471 Church St, Richmond, a site it bought last year for $51 million;
- Bayley Stuart, with a 5793 sqm office at 600 Church St, Cremorne (reportedly set to be the next home of Domain Group, which is currently at 380 City Road, South Melbourne, walking distance to the CBD); and
- Riverlee and Bamfa, with a 13-storey building, containing 17,000 sqm of area at 484 Swan St, Richmond.
In 2014, Cremorne Properties completed a five-level office at 511 Church St, Richmond, now home to REA Group.
In 2010, the pair paid $20m for Cremorne’s Maple Close business park, part of which has been subsequently tenanted to Tesla.
Teska Carson agency director Matthew Feld said the pocket is becoming known as Melbourne’s technological, creative and fashion industry hub.
“The amenity that the area provides for staff is second to none,” according to the executive.
It is also well serviced by transport, has numerous hospitality options and more coming – he added.
Large companies including Seek, which will move from St Kilda Road, and MYOB, which will relocate from Glen Waverley, choose the area to attract and retain staff, Mr Feld said.
“The large companies are all about staff retention, they feel that if they can offer staff a brilliant location it will ensure they stay on board for longer periods of time”.
Developers are following suit.
“With increased tenant demand and limited stock options, savvy investors are looking to take advantage of these conditions by buying up buildings that will not only see outstanding rental growth, but also a strong increase to their capital value year on year”.