Upgrade the key to 12,000sqm in lease deals at Melbourne's 15 William Street tower
| 15 February 2017
An effective refurbishment and the addition of a premium end-of-trip facility has paid dividends for the owners of Melbourne’s landmark 15 William Street office tower, with more than 12,000sqm of lease deals recently finalised.
Six separate tenants committed to the building in 2016 in deals negotiated by CBRE leasing agents Mark Bolis and Patrick Mount and JLL agents Stuart Colquhoun and Ashley Buller.
In the largest lease, the Commonwealth Government secured 7,200sqm of space on a 10-year term, while IPG Media secured 2,060sqm of space for eight years.
In other deals, Cognizant – a leading provider of information technology, business consulting, enterprise applications and business process services – secured 1,400sqm of space for 5 years while Charles River has taken a six year lease over a 500sqm office suite.
Mr Bolis said the commitments meant just 1,000sqm of space was available for lease – with further areas becoming available later this year.
“The first class end-of-trip facilities have been a major draw card for tenants, providing 21 showers, 430 lockers, secure bicycle parking for 251 bikes and added benefits such as a complimentary towel service, drying cupboards, bike maintenance facilities and a bike accessory vending machine,” Mr Bolis said.
“Occupiers have also been attracted by the fact that the building offers highly efficient, Docklands-style floorplates of over 2,000sqm, a car parking ratio of 1:110 sqm and on-site childcare facilities”.
The building owners, Deka Immobilien Investment GmbH, responded to occupiers’ desire for “character” space by creating an alternative tenancy refurbishment specification inspired by Melbourne’s laneway culture.
This specification incorporates industrial-style exposed ceilings and services, polished concrete columns and floors, feature lighting and graffiti walls created by recognised local laneway artists.
JLL’s Mr Colquhoun commented; “The creation of two laneway suites showcasing the possibilities for character space within a modern building has generated significant interest, particularly amongst the creative occupier sector. This has attracted new tenants such as IPG Media and Cognizant, and inspired them to extend this design philosophy throughout their new office fit-out.”
Mr Colquhoun said two contiguous floors would become available in the upper levels later this year, and these were already attracting a strong level of occupier interest.
“Their elevated position in the building provides great natural light and spectacular views over the Yarra to the MCG. Internal stairs connect the two floors meaning the space is particularly attractive to large occupiers.”
15 William Street is a 20 storey office building which underwent a $100 million redevelopment in 2003. This redevelopment included significant upgrades to building services, elevating these to a Premium grade standard, while adding additional car parking on Flinders Street.
The building owner’s program of ongoing capital reinvestment in the asset has resulted in improvements to the building including four additional levels of car parking, a childcare centre and new, market-leading end-of-trip facilities. The building also features a hotel style lobby with various casual meeting spaces and a popular new “pop-up” cafe.
The building benefits from strong environmental credentials with a 4.0 Star NABERS Energy Rating and 3.5 Star NABERS Water Rating.
Another attraction for tenants has been the fact that while15 William Street is an A-grade building, the majority of its services meet Premium Grade building standards.
The building’s location has been a strong selling point, being a short walk from Flinders Street and Southern Cross Stations and adjacent to Flinders Street, William Street and Collins Street trams.
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