Gandel Group and Vicinity Centres have unveiled a third major office at Chadstone – The Fashion Capital.
Due for completion in 2023, 1 Middle Road, forms part of a $685 million extension and refurbishment the owners announced in late 2019.
It will contain c20,000 square metres of A-grade area over nine floors.
The end value is mooted at $200m.
The office is being marketed for lease by Colliers, which in 2017 relocated its Eastern branch to a then-new building at the shopping centre, from Clayton.
Demand outstripping supply
The two most recently developed existing Chadstone offices are full.
Four years ago, Gandel relocated its headquarters from a space atop of the David Jones store to one of them.
That landlord’s ex-tenancy was filled by serviced office operator Waterman.
“A number of the small tenants which incubated inside Waterman have transferred into whatever space was available elsewhere in the two towers,” Mr Joyes said (story continues below).
Amenity as good as town…
“We are first hand advocates of the area,” the agent added.
“Like us, other corporate tenants are looking at lifestyle when they choose workplace accommodation – and one of the benefits of Chadstone is its proximity to amenity – restaurants, retail, gyms, wellness facilities and essential services including childcare and healthcare,” according to the executive.
“Occupants can run out in their lunch hour and do something during the week which might have ordinarily have been a task needed for a weekend,” he said. “The location plays a big part in attracting and retains staff”.
A 12-storey, 250 suite hotel opened at the centre in late 2019.
Also as part of the $685m shopping complex revamp, outdoor dining and entertainment precincts are being extended while 5300 sqm healthcare related product, and 1400 car parks, will be added.
…at half the cost
Mr Joyes said the combination of amenity, with cost savings, has kept demand for the two existing offices high.
“Office rents average over $450 per sqm, per annum, net,” he said of the area. “There are also 13,000 free car parks which when tenants do the numbers, can reduce occupancy costs to half that of the CBD, and substantially less than many inner locations”.
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