Office Sector Set to Strengthen in 2011: Report

LAST year, by and large, residential landlords were the investors best able to reap the rewards of a short supply, by boosting their rents.

This year however, may be year of the office landlord.

According to a new report by commercial real estate agency Colliers International, office rental costs are expected to increase in most capital cities, because of a shortage of new supply and an improving economy.

It expects office vacancies to fall in all major CBD office markets expect Brisbane (which already has a high 9.6 per cent vacancy).

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Grocon, APN to Develop Scots Church Carpark, Melbourne CBD

Scots ChuchTHE on-again-off-again plan to redevelop the car park behind the Scots Church, in the Melbourne CBD, is on again.

Grocon and joint venture partner APN Property Group are planning to build a $150 million, 20,000 square metre office on the site of a car park behind the heritage listed church, at the corner of Russell and Collins streets.

The building will have a street address of 150 Collins Street, despite facing Russell Street.

Elsewhere in the area CBus Property is planning to redevelop 171 Collins Street into a $280 million office and retail complex.

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CBUS Buys Half Share in 171 Collins Street Development

171 Collins StreetAS reported in The Age last year, CBUS Property has confirmed it is the mystery buyer of a half share interest in Melbourne’s 171 Collins Street development.

CBUS has paid Sydney-based owner Charter Hall $15.5 million, to take its share in the $280 million office development, which challenged a previous planning precedent, restricting height around the “Collins Street spine”.

It’s understood the developers are targeting the National Australia Bank which has a 40,000 to 60,000 square metre requirement in the market at the moment.

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Nurses Board of Victoria to Reap More than $12.5 Million From Two Adjoining Melbourne CBD Offices

RESIDENTIAL developers are circling two adjoining office buildings at the “Docklands” end of the CBD – being offloaded by the Nurses Board of Victoria.

The buildings, at 595 and 597 Little Collins Street, are expected to reap a total of about $12.5 million at auction next month.

The Board paid $4.1 million in March 2000 for 595, and $4.9 million in June 2008, for 597.

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Victorian Farmers Federation to Sell 24 Collins Street

THE Victorian Farmers Federation has outgrown and will sell an “under-utilised” office building at Collins Street’s Paris-end.
The 40-year old office at 24 Collins Street is expected to sell for between $16 million and $19 million, sources say, reflecting a yield of between 6 and 7 per cent, based on the building’s potential annual rental income of $1.1 million.

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