South Yarra home of The Commons hits market with $4.9 million annual net income
The Commons has built a reputation in Melbourne for premium co-working spaces and, more recently, it has expanded into sleek health clubs in South Yarra and Richmond.
Now, investors can acquire a building housing one of those wellness clubs, with the listing of 189 Toorak Road, South Yarra.
The property generates a net income of $4,913,568 a year and has an indicative weighted average lease expiry (WALE) of about 8.25 years, with fixed annual rental increases.
Heritage and modern design
Occupying a 905-square-metre site on the corner of Toorak Road and Claremont Street, the building retains the restored Victorian facade of the South Yarra Coffee Palace, which dates to 1887. It was was later known as Hotel Claremont.
Behind it rises a contemporary tower designed by global architecture firm Skidmore, Owings & Merrill. Completed in 2025, the 11-storey building is one of the newest on the strip.
Inside, the fully leased property brings together a bathhouse, fitness studios, offices and hospitality venues. The Commons anchors the building, occupying about 3908 square metres of its 5565-square-metre net lettable area.
Cushman & Wakefield director and head of Asia capital services Australia Leon Ma says the combination of workspace and wellness facilities reflects the evolution of premium commercial buildings.
“The mix of workspace, wellness, hospitality and flexible office space is a defining feature of the asset,” he says.
“The Commons has created an integrated workplace and health offering that generates activity well beyond conventional office hours.”
Integrated wellness workplace
The emphasis on wellness reflects a broader shift in how companies design and use their offices, with greater attention to spaces that help employees recharge during the working day.
JLL’s 2025 Occupancy Planning Benchmark Report found companies were increasing their provision of wellness areas and prayer and meditation spaces, alongside areas for focused work and collaboration.
The findings pointed to a growing emphasis on employee wellbeing in workplace design, a trend reflected at 189 Toorak Road.
The office tenant line-up also includes SOM’s Asia-Pacific headquarters, Fancourt Capital Group and V-Leader Group.
The hospitality team behind Gilson and Frog Club is set to open its third restaurant at the property, adding another drawcard at street level.
International play
The property is being offered through an international expressions-of-interest campaign, with enquiries expected from both domestic and overseas investors.
Cushman & Wakefield international director and head of investment sales Australia Oliver Hay says the combination of location, architecture and tenancy profile distinguishes the offering.
“189 Toorak Road is difficult to replicate,” he says. “It combines a prominent Toorak Road corner, significant heritage character and globally recognised architecture with a long-dated income profile and a highly complementary mix of occupiers.”
The property is about 110 metres from South Yarra Station and 100 metres from the nearest tram stop, with the retail and dining precincts of Toorak Road and Chapel Street within walking distance.
Expressions of interest close at noon AEDT on Thursday, November 12.
