Hawthorn is emerging as a Melbourne office market to watch in 2021, well-placed to attract tenants due to more flexible working arrangements and heightened demand for inner-suburban locations.
At 104 Burwood Road, the 130sqm Suite 1 was leased on a 3+3-year term to Keen to Clean Group, which were moving to Hawthorn in order to be in a more central location.
Suite 2 was leased to Stamford Lawyers, who were relocating in the other direction - out of the CBD. The 2+2+2 year lease for 140sqm was struck at $30,000 per annum plus GST.
Land said the in situ fit-out and workstations will be retained by the tenant, with the plug-and-play nature of the space quite desirable.
“There were very high levels of enquiry for these offices given the limited size offering in the area and the affordable rental level.”
Land said the shorter terms of the leases and multiple options were representative of tenants across Melbourne, with the fluid COVID situation meaning smaller tenants are committing to shorter-term deals than they previously would have taken up.
He said there is going to be demand and supply across all parts of the Melbourne office market, with movements going both ways between the CBD and the inner-suburbs.
“There are plenty of businesses seeking a move to city fringe and inner suburban locations to be closer to their home, making it easier to access the workplace and collaborate with colleagues in-person during a period of more flexible working hours and arrangements.
“For some, a move to a more central location may be the most appropriate course.
“Hawthorn in particular has seen strong enquiry as an inner-city suburb that is well-serviced by public transport, easily accessible via car with major arterial roads nearby, and offering more competitive rents as opposed to suburbs right on the city fringe.”
Land has also leased 380sqm on part of level one at 313 Burwood Road to fuel systems engineers Leighton O’Brien, who were moving from slightly smaller offices in the neighbouring Hawthorn East, preferring to optimise their position in the popular area.
The 5+5-year lease was struck at $218,983 per annum plus GST, which Land said demonstrated that established companies that haven’t been so heavily impacted by COVID are still comfortable with longer leases.
He said the office is situated in a prime Burwood Road position near the corner of the vibrant Glenferrie Road retail and hospitality strip, and opposite Axel Coffee Roasters.
“Businesses and workers are favouring highly accessible location with food and beverage and lifestyle amenity,” he said.
The premises were previously occupied by Generic Partners who were bought out by Arrotex Pharmaceuticals and subsequently amalgamated into their Cremorne offices.
“We received interested from a range of local tenants as well as tenants considering relocating from the CBD,” Land said.
“Leighton O’Brien will utilise the existing fit-out in situ, which comprises four glass office/meeting rooms and a large boardroom. The quality existing fit-out in situ was desirable from all prospective enquiry and we have seen greater interest in fully fitted offices following COVID-19 changes.
“Fitted spaces continue to be sought after as many tenants want an easier move, and often one that is more cost-effective.
“The office contained a large private balcony space which we understand differentiated this building from others and ultimately helped in securing the tenant”
Ample on-site car parking was available and Leighton O’Brien opted for 20 spaces. Land said this is another desirable aspect for prospective tenants within the CBD fringe office markets as some remain hesitant about a return to public transport.”
This is the third lease between 300sqm and 400sqm Land has negotiated in the building over the past year, with deals struck for spaces on each of levels one, two and three. Fuse Recruitment are also relocating to the building from a smaller office nearby at 328 Burwood Road, also preferring to remain in the immediate area due to its immediate proximity to Glenferrie Road’s retail amenity, and public transport links including short walking distance to Glenferrie station.