Sony Music is the latest creative occupier to commit its local headquarters to Melbourne’s Richmond.
The media and digital music company has leased all of 5 Stewart Street, opposite the busy Richmond train station, for a four year term, with four renewal options.
It will move from another office in the suburb
Its new double-storey headquarters, with graffiti on its exterior walls, and bars on its windows, offers an ultra-modern interior.
It sold to an investor last year for $4.1 million, a value which reflected a suburb record land rate of $17,400 per square metre.
The vendor and former occupier was developer LAS Group, which moved to St Kilda.
Morley Commercial’s Tom Larwill leased the “New York Warehouse Style Office” at 5 Stewart Street.
The 470 sqm building includes 440 sqm of lettable area and sits on a 235 sqm site with car parking, about two kilometres from the city centre.
Mr Larwill said no expense was spared with the refurbishment, which incorporated “the old industrial charm” – including high ceilings and timber beams.
The broker describes Richmond as one of Melbourne’s “most exciting office precincts”, close to amenities, the city’s sports precinct, and with an abundance of cafes, restaurants and public transport.
Sony Music is speculated to be paying about $500 per square metre, per annum, but this could not be confirmed with Mr Larwill.
Properties in Cremorne, a pocket of Richmond, have recorded significant rental and capital value growth in recent years.
Agents say office rent deals are regularly struck at rates of or above $500 per square metre, per annum.
Last September, developer CostaFox applied to build an eight-storey strata office complex at 1-11 Gordon Street, in the vicinity.
Elsewhere in the pocket, AXA Investment Partners paid $100 million for an office which had just started construction at 17-21 Harcourt Parade. Upon completion the eight-level building will be leased to MYOB which also has naming rights.
Also in that month, four neighbouring houses at 102-106 Stephenson Street sold for $7.1 million to an office developer, a deal which valued each sqm of land at about $13,000.
Two years ago, Zig Inge Group unveiled plans to build a seven-storey office on airspace atop a former Rosella factory at 57-61 Balmain Street, off Church Street. Part of this complex was subsequently pre-leased to plumber, Reece, which will relocate from Burwood, 12 kilometres east of the Cremorne.