Hospitality, Lifestyle And Price Point Attracting Tenants To Collingwood Office Market

Posted on 16th February 2023

Collingwood’s fast-growing office market is attracting more tech tenants thanks to its world-class lifestyle and hospitality offering, as well as its affordability compared to Melbourne’s established city fringe office markets.

In the latest deal, Fitzroys’ Lewis Waddell and Hamish Dennis have leased 12 Smith Street to video editing company The Editors, on behalf of a private local investor. The five-year deal was struck at $170,000 per annum net after enquiry was dominated by tech firms and creative studios.

The Editors, which has a head office in Sydney, will be moving from South Melbourne and consolidating multiples offices and studios in establishing its new Collingwood digs.

Waddell said the new tenant likes the excitement and feel of the inner north.

“The lifestyle offering of Collingwood and neighbouring Fitzroy is a huge drawcard for businesses looking to set up office space and attract and retain talent, particularly tech and creative firms”

Waddell said Smith Street and Gertrude Street is a world-class day and night hospitality and lifestyle precinct, with iconic bars and eateries such as Marion, Builders Arms, Cutler and Co., Anada, Arra, Caz Reitop’s Dirty Secrets, Smithward and more, and Smith Street recently held the title of Time Out’s “Coolest Street in the World”.

“Collingwood’s office population is growing fast, and along with Abbotsford, is attracting an increasing number of companies also because it’s a more affordable alternative to the established Cremorne and Richmond markets,” Dennis said.

Collingwood’s office market is developing rapidly with multiple projects recently completed and underway. Among them are the $111 million 54 Wellington by Impact Investment Group, global investment group Hines’ $200 million 15-level timber tower, Peregrine Projects’ 88 Langridge Lane, which will become the new Australian and Asian head office of Aesop as well as home to Swisse Wellness, and recently completed buildings at 71 Gipps Street and 51 Langridge Street.

Waddell said Collingwood is also considered to be very conveniently located and highly accessible, by car via Alexandra Parade and Victoria Street, and by multiple tram routes including the Route 86 tram and multiple bus routes.

The fast-evolving area is also seeing major residential developments such as Gurner’s Victoria and Vine and E.S. Smith, and a host of boutique projects including by both Neometro and Piccolo on Gore Street and a new hotel on Rose Street.