Global fitness company F45 Training has a secured a new Melbourne site in South Yarra, choosing to remain in the growing and increasingly vibrant commercial market that is positioning itself as a future city-fringe working and lifestyle hub.
Fitzroys Manager - Office Leasing, Samuel Friend negotiated the secure five-year lease with a five-year option for the 470sqm space at $425 per sqm with 3.5% annual increases.
Located in the heart of South Yarra and flooded with natural light from all four sides of the building, the space was offered with a full fit-out that included a dedicated reception and waiting area, multiple offices, board room and meeting rooms and open plan working areas.
Friend said this was a very rare opportunity to occupy a full-floor commercial space of this size and calibre in South Yarra.
He said F45 had been looking to remain in South Yarra. While F45 are moving out of their current site on nearby Yarra Street, which is being turned into a new residential apartment building - typical for the Forest Hill precinct that has become one of Australia’s highest-density residential precincts - the group was also on the expansion path.
“The space is 30% larger than their current space, allowing for more members as they are working at capacity. They will also be able to capitalise on a position just metres from the Forest Hill precinct.
“Businesses are wanting to attract and retain talent in the up-and-coming generation of workers. As Melburnians seek to live, work and play in greater numbers around the city fringe, accessibility and connectivity are placed at a higher premium, as are locations near quality dining, shopping and recreational options such as gyms, fitness centres and wellness centres.”
Friend said the campaign and the leasing deal represented another vote of confidence in the direction of the South Yarra office market, which is positioning itself as a future city-fringe office hub attracting young professionals and quality, energetic businesses.
“We had over 15 qualified enquiries, mostly from groups based in the local Stonnington area either looking for a larger premises, or to move closer to Toorak Road and South Yarra station.”
The property offers direct ground floor access right on Toorak Road, has five on-site parking spaces, and is just 100 metres from busy South Yarra station and accessed by multiple tram routes along Toorak Road and Chapel Street, including a tram stop at its doorstep.
“F45 isn’t able to currently operating its gyms due to lockdown restrictions, but had taken a longer-term view of their operations and the South Yarra market and sought a long-term deal,” Friend said, adding that this was an approach that was taken more broadly.
“All interested groups made it clear they preferred minimum terms of four to five years with options.”
Friend said there are big-name tenants actively looking for space in the market, and who will continue to pursue their requirements amid the current environment. F45 made enquiries for other quality South Yarra commercial spaces, including Level 1 of the 60 Wilson Street building that Fitzroys has just leased to global entrepreneurial publication and media company Foundr Magazine for its new headquarters.
Fitzroys also recently leased offices at 6 Bond Street to popular bottled kombucha label Remedy Drinks, another interested party in the 60 Wilson Street space, and to creative architects Telha Carke at 59 Garden Street.
“The suburb’s revitalisation is anchored by a new wave of commercial and residential supply, the amenity and accessibility of the famous Chapel Street retail and lifestyle strip, the $1.25 billion Jam Factory precinct overhaul, and complemented by the food and beverage hub at the Windsor end of Chapel Street.”
Some 50,000sqm of new office space will be introduced at the Jam Factory in the coming years, as well as retail space and an upgrade of its hospitality offering and famed Hoyts cinema. Developments including 627 Chapel Street and Chapel Plaza at 402 Chapel Street will bring a further 30,000sqm of new offices to the South Yarra market, in addition to large-scale residential development in the Forest Hill precinct, and the Capitol Grand and Aloft Hotel projects.
The 96-100 Toorak Road property has two separate ground floor retail spaces, one of which is occupied by Australia Post. Lewis Waddell of Fitzroys is currently leasing the second space which is now vacant and ready for a new tenant.