The gymnasium operator will pay about $230 a sq m to fully occupy the building. It will also pay an additional $80 a month for each of the 58 car parks.
Gorman & Kelly director Sandro Peluso, who negotiated the off-market lease, said the starting rent, including car parks, was about $635,000 a year, with annual increases. He said Re-Creation signed for 15 years, with further options.
The site, at the border where Malvern becomes Glen Iris and near the Harold Holt Memorial Swimming Centre, will be Re-Creation’s seventh gymnasium. It also has gyms in Armadale, Hampton, Sandringham, Geelong, Sunbury and Essendon. Re-Creation advertises for franchisees on its website.
The building was occupied by Oz Knits, which used it as a retail showroom, office and storeroom. It has moved to a smaller retail premises in the area.