Top-tier office tenants sought
MAB Corporation has joined a growing list of developers looking for top-tier tenants to occupy purpose-built new city office spaces.
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.