Ground Floor, 60 Wilson Street, South Yarra
Fresh from a $75 million raise, grocery delivery start-up sensation Milkrun is making its Melbourne debut in South Yarra.
Fitzroys Senior Manager - Agency, Lewis Waddell negotiated the three-year lease with a three-year option for the Ground Floor of 60 Wilson Street.
Launched in September, Milkrun has quickly expanded to now operate in 35 suburbs across Sydney. Using a network of warehouses - known as dark stores - Milkrun stocks up to 2,000 grocery products that its own riders on e-bikes deliver to customers within 10 minutes of ordering via the Milkrun app.
The 400sqm Wilson Street space will be used as Milkrun’s first Melbourne dark store for products to be picked and then delivered by riders, as well as for office space.
“This densely populated inner-city catchment is the ideal place for Milkrun to make its Melbourne debut,” Waddell said.
“South Yarra is undergoing a transformational period that is bringing yet more residential and commercial developments, which will further boost the catchment.
“Milkrun’s decision to set up in Melbourne here is a huge vote of confidence in the future of South Yarra.”
The nearby Forrest Hill precinct is one of Australia’s most densely-populated areas and is where US company Greystar is planning Australia’s biggest build-to-rent project; while Newmark Capital, Gurner and Qualitas are currently planning a $1.5 billion Jam Factory redevelopment that will bring 400 apartments and new office space, Goldfields is developing a new office tower at 627 Chapel Street.
Dahua, Spotlight and Simonds Group are all developing projects in the suburb too.
Waddell said the triple-fronted ground floor premises at 60 Wilson Street provided easy access for Milkrun’s riders.
“The flexibility of the open-plan space drew interest from office, retail, fitness and medical users. Businesses are keen to get into a highly accessible area close to famous Chapel Street and its lifestyle and hospitality amenity,” Waddell said.
“Melbourne’s suburban commercial leasing market has seen a huge number of food and beverage and grocery operators taking up space since the beginning of COVID, in line with a surge in demand for essential products and delivery services.”
Milkrun, founded by former Koala mattresses CEO Dany Milham, has just completed a $75 million capital raise backed by major US fund Tiger Global Management, and local funds AirTree Venture, Skip Capital and Grok Ventures, as it sets about the expansion path.
Milkrun is a vertically integrated business that employs its own delivery riders and sources its own food that is stored in its own warehouses. It is expected to grow to 1,000 employees in the coming months.
The 60 Wilson Street building has now become a start-up hub. On level one of the building is the world headquarters of global start-up and entrepreneurial publication Foundr Magazine, which Fitzroys leased in 2020.