Mitsui Leases Office Space at 120 Collins Street

The 53-level building suffered a major loss two years ago, when advisory firm Ernst & Young vacated more than 15,000 square metres. Shortly after, law firm Phillips Fox vacated a further 6000 square metres – leaving almost a third of the 64,000 square metre building unoccupied.

Well placed leasing agents say all of that space has now been leased or is under negotiation.

The Mitsui deal, for around 1100 square metres, is understood to have been struck at a high rent of around $520 per square metre after incentives. This continues the building’s tradition as one of the most expensive offices in Melbourne to lease.

Jones Lang LaSalle leasing agent Rainer Paterson declined to comment on any part of the Mitsui deal when contacted by Capital Gain. She did say however that low office vacancy rates, coupled with limited new supply and a backlog of tenants wanting premium grade buildings, will continue to push rents skywards.

This may be good news for Investa, which will face a 6000 square metre vacancy in 2009 when financial services group AXA relocates to a new building at 750 Collins Street in Docklands.

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Marc Pallisco

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

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