Liberman family seal Collingwood office lease deals
The Liberman family backed Impact Investment Group has signed up a swag of tenants to a recently completed Collingwood office, construction of which was delayed following the collapse of Grocon over two years ago.
Each of Launch Housing and the Yoorook Justice Commission have leased 1500 sqm.
They join employment service Expressions Australia, which committed to 1190 sqm, moving from East Melbourne.
Today Design, meanwhile, which was already based in Collingwood, has rented 830 sqm.
The businesses join Bank Australia, which signed up during construction then in late 2021 sold the Kew office it occupied for 39 years for $15.125m.
Co-work outfit The Commons also leases part of the 12 storey, 15,400 sqm complex, at the north east corner of Northumberland St.
Aesop was the first and highest profile tenant IIG secured – however following the Grocon-related delays in construction, that business tore up its agreement and moved to an 1869 sqm space at 88 Langridge St.
Building now for sale
IIG recently offered 54 Wellington St for sale with c$160m price hopes via Cushman & Wakefield’s Nick Rathgeber, Leigh Melbourne, Mark Hansen and Josh Cullen.
That agency’s Ben McKendry, with JLL, brokered the building’s latest lease deals.
“As businesses continue to prioritise employee satisfaction and productivity, the demand for high-quality office spaces remains strong, which has paved the way for new developments that meet the evolving needs of modern businesses, who understand the importance of providing the best possible workplace for their employees,” he said.
“There has been significant demand for new office space in Collingwood over the past 18 months, which is a testament to the attractiveness of the area for businesses as occupiers gravitate to areas with high quality retail amenity as a further enticement for workers to return to the office,” he added (story continues below).
Collingwood office lease deals c40,000 sqm since COVID: agent
Elsewhere in Collingwood, Acciona recently leased 3650 sqm at 71 Gipps St, owned by RF Corval.
Swisse Wellness meanwhile committed to 1100 sqm of 88 Langridge St 11 months ago – an agreement struck with Joseph Chahin’s Peregrine Projects which went on to sell the asset to German fund manager DWS.
That tenant’s outgoing premises, a 2800 sqm warehouse converted office at 111 Cambridge St, was taken up by Live Nation/Ticketmaster, which consolidated from the CBD and Richmond.
Since mid-2021, Mr McKendry said, some 39,000 sqm in Collingwood lease deals have been struck.
“The presence of these companies in Collingwood speaks to the area’s growing reputation as a desirable location within the inner northern city fringe for businesses seeking high quality office space,” he added.
Elsewhere in the suburb, Peter Cahill’s Domain Hill Group recently completed a seven storey, 5400 sqm office at 71 Langridge St, while Hines is constructing a wooden 12 level one at 36-52 Wellington St, on the north east corner of Northumberland, opposite the IIG property.
“Collingwood is the gateway to the northern suburbs and provides excellent public transport networks to the north, all while being within close proximity to the CBD,” according to Mr McKendry.
“We expect demand for the area to remain strong, spurring on further new development activity in years to come,” he said.
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