Top-tier office tenants sought
MAB has approval for the first of four 11-storey commercial towers in Docklands and is pitching the building to potential blue-chip clients.
The building, designed by Hassell Architects, will include shops and restaurants and will take up a quarter of a 10,000-square-metre site at 396-416 Docklands Drive owned by Places Victoria, behind MAB's New Quay development.
MAB's plans follow Planning Minister Matthew Guy last week approving a 50-level, 51,280 sq m $190 million building on a 1290 sq m block at 272-282 Queen Street.
Savills Australia research director Tony Crabb said Melbourne had not seen office proposals of a similar scale to the Queen Street development since the 1980s.
Rents were not at a level that would justify a building of that size and scope, Mr Crabb said.
"In theory it's feasible. In practice, the economy, timing and cost all has to be synchronised in order for something like that to come out of the ground," he said.
Another developer, Lend Lease, also recently announced plans to add to the city's commercial space with a 9-level commercial complex called Y4 on the Yarra riverfront at Collins Street.
It sits next to another Lend Lease building, the 21-storey Y3 that is also looking for tenants prior to getting a green light for construction.
Frequently Asked Questions about this Article…
MAB Corporation has approval for the first of four 11-storey commercial towers in Docklands. The Hassell Architects–designed building will occupy a quarter of a 10,000‑square‑metre site at 396–416 Docklands Drive and will include shops and restaurants as part of the mixed‑use scheme behind MAB’s New Quay development.
The 10,000‑square‑metre site at 396–416 Docklands Drive is owned by Places Victoria, and MAB’s tower will take up a quarter of that site.
Developers are pitching purpose‑built new city office spaces to top‑tier and blue‑chip tenants to secure strong pre‑commitments. The article notes MAB is actively pitching the Docklands building to potential blue‑chip clients, and Lend Lease is also seeking tenants for its proposed commercial towers before proceeding to construction.
Tony Crabb said Melbourne has not seen office proposals on the scale of the Queen Street development since the 1980s. He also warned that rents were not at a level that would justify a building of that size and scope, and that economy, timing and cost all have to be synchronised for such projects to proceed.
Planning Minister Matthew Guy approved a 50‑level, 51,280 square‑metre commercial building valued at about $190 million on a 1,290 square‑metre block at 272–282 Queen Street, a development noted in the article as unusually large for recent Melbourne office proposals.
Lend Lease recently announced plans for a 9‑level commercial complex called Y4 on the Yarra riverfront at Collins Street. Y4 sits next to another Lend Lease building, the 21‑storey Y3, and both buildings are looking for tenants before getting construction approvals.
The article highlights that rental levels may not yet justify very large new office buildings, and that successful delivery depends on synchronising the economy, timing and construction costs. Securing high‑quality tenant pre‑commitments is also implied as a key hurdle.
According to the article, the Docklands tower designed by Hassell Architects will include shops and restaurants as part of its mixed‑use offering, complementing the commercial office space.
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