SalesForce Leases Former Qantas CBD Building

The deal is believed to be the biggest single lease transaction in the CBD grid this year, and increases the amount of city space now occupied by call centre operators.

SalesForce, which is currently headquartered in Carlton and occupies several buildings in the inner-northern suburbs, will consolidate its operations to the 10,900 square metre, 17-storey building at the northern tip of the CBD, sources say. It’s understood to be paying a low rent of around $200 per square metre after incentives, to occupy the B-grade space.

Developer PDG Corporation bought the Franklin Street building, and an adjoining showroom in Therry Street off Qantas last year, in a deal worth $16.5 million. In January, the developer won approval to build a 47-story residential apartment tower on part the site.

PDG Corporation managing director Vince Giuliano, and a representative from SalesForce, failed to return Capital Gain’s calls.

The SalesForce deal follows Property Council of Australia figures released this week, which showed Melbourne’s CBD office vacancy rate fell to 5.9 per cent, its lowest level in five years.

SalesForce is the second major call centre operator to relocate its operations from the city fringe to the CBD. In early 2005, United Customer Management Solutions relocated from Dorcas Street South Melbourne to 15 William Street – and has since expanded its occupancy in that building, and the one nextdoor at 452 Flinders Street.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco

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