Rialto racks up 18,000sqm of lease deals
Melbourne’s Rialto has chalked up more than 18,000 square metres of leasing activity over the past year
New tenants include Arch Underwriting, Eightcap, Ionic Rare Earths, L.E.K. Consulting, Persistent Systems and Vorwerk.
Existing occupiers to renew, sometimes expanding, are AllianceBernstein, Balmain, Daiwa Securities, K&L Gates, Plenary and Ridley Corporation.
Advisory and accounting firm Bluerock also committed for another five years across about 5000 square metres.
MasterCard is understood to have leased the top floor of the south tower (the 54th level).
Cushman & Wakefield’s Marc Mengoni, Stephanie Harding and Ben McKendry with ETC’s Tony Landrigan, Edward Knowles and Martine Inge are the leasing agents.
Rialto reset
The leasing push follows a change in the tower’s operations in 2024 and more than $12 million of investment in tenant amenity and workplace upgrades.
A space has opened as wellness club Sfidi, founded by Lorenz Grollo, chairman and chief executive officer of the building’s half-share owner, Grollo Co, and his wife Manola.
The other 50 per cent is held by a joint venture between Singapore sovereign wealth fund GIC and Dexus, which paid $644m in 2020.
GIC owns 90pc of the venture with Dexus controlling the balance and also managing the complex (continues below).
The deals come a year after Grollo Co flagged a possible sale of its interest.
Flight to quality
Mr Mengoni said the investment in Rialto helped the asset compete for occupiers seeking higher-quality office space.
Mr Knowles and Mr Landrigan added Rialto has been a major beneficiary of that trend.
“Occupier demand is increasingly concentrated in premium-grade assets that can demonstrate genuine workplace value,” they said.
“While conditions remain challenging across the broader market, we’re seeing businesses take advantage of the opportunity to upgrade accommodation, often without materially increasing occupancy costs. Rialto has been a major beneficiary of that trend,” according to the executives.
“Importantly, we’re also seeing confidence return among existing tenants, with a number choosing to renew or expand rather than relocate.
“That speaks to both the strength of the precinct and the long-term appeal of premium office assets in core CBD locations”.
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