Briefs

Fitzroys agents Rob Harrington and Tom Backay subleased a whole floor (763 sq m) at 478 Albert Street, East Melbourne, to Superpartners (Australia’s largest superannuation administrator). The modern level-two office with a full fit-out generated rent of $393 per sq m gross per annum plus GST. The seven-level building totals about 4,500 sq m and is close to Parliament Station overlooking Parliament Gardens.

According to the article, supply of similar quality office space at the east end of the CBD is at a historical low, which is placing further upward pressure on rental levels. Brokers reported multiple parties seeking furnished office space, highlighting strong demand against constrained supply.

PETstock committed to a 655 sq m bulky goods showroom at 2/88 Cooper Street, Epping, moving from a smaller South Morang outlet. The deal was negotiated by CBRE’s Scott Littler at about $117,000 net and is a three-year lease with a four-year option. For investors, it shows demand for large-format retail space outside the CBD and how recent planning changes are opening up leasing opportunities for bulky goods retailers.

The Baillieu government’s recent changes lifted restrictions that previously prevented premises under 1,000 sq m from trading in restricted retail sites. The resulting flexibility in some industrial zones has opened new leasing opportunities for large-format retailers such as PETstock, according to brokers quoted in the article.

Melbourne Body Corporate Management (MBCM) purchased the shopfront office building at 200 Huntingdale Road, Oakleigh East (corner of Dandenong Road) for $645,000. The private sale covers a building with about 190 sq m of office area on a 258 sq m land parcel with Business 1 zoning. The property — sold vacant possession and negotiated by Crabtrees agent Alex Ivory — includes airconditioning and data cabling, and MBCM has been managing strata-titled commercial and residential properties in Victoria for more than 25 years.

Two leases were negotiated at 607 St Kilda Road (the Centuria Property Funds building). Alfred Health will occupy three floors totaling 2,407 sq m for an initial nine years at a starting net rent of $260 per sq m. Sodexo signed a seven-year deal across 1,288 sq m at a net rent of $240 per sq m. The building has also seen recent renewals from tenants including Celgene, Six Degrees, Software AG and BDA Marketing.

Lowe Lippmann, the Australian Grand Prix and Jacobs entered contracts for a combined total of 5,000 sq m at 616 St Kilda Road. Those deals were negotiated by Chris Curtain of Lemon Baxter and Simon D'Arcy of Knight Frank, indicating continued demand for large floor plates on St Kilda Road.

The article highlights strong leasing demand for quality office and large-format retail space (e.g., Superpartners, PETstock, Alfred Health, Sodexo) alongside constrained supply in parts of the city. Government planning changes are also creating new opportunities for bulky goods tenants. For everyday investors, that combination can signal upward rental pressure in tight markets and growing leasing activity in industrial and suburban retail precincts — factors worth monitoring when assessing commercial property exposure.