By The federal government has quietly issued a major requirement to lease office space in Melbourne.
The Commonwealth is looking for between 20,000 and 25,000 square meters of Category A space within a three-mile radius of the GPO, meaning Abbotsford, Cremorne, Footscray, St Kilda Road and South Yarra could be considered.
However, given that a key requirement is to be close to the headquarters of large financial, telecom, and tech companies, a CBD location or on the outskirts of the city is more likely.
Access to day care centers, medical establishments and schools is also sought.
The tenant also needs at least 100 parking spaces.
Spoiled for choice
The government is ready to sign for an initial 10-year term with a five-year option.
Preference is for an entire building but he would consider occupying part of an office provided there are adjoining floors with interior stairs.
Tenders go out by tomorrow and delivery is scheduled for March (story continues below).
Brett Weeks of JLL represents the tenant.
The requirement comes nine weeks since Medibank pre-committed for 17,500 m² of an office in Docklands which was immediately after sold to the National Pension Service of Korea for $ 1.2 billion.
Earlier this month, the Property Council of Australia released its report on the office market, putting Melbourne CBD’s vacancy rate at 10.4%.
The sublet space has more than doubled since January.
New buildings expected to be delivered in the next six months include 405 Bourke Street (66,000 m²), 1000 La Trobe St (artist’s view, top, with 33,000 m²) and 100 Queen St (30,353 m²).
More soon.
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