Deka's Melbourne office tower wins tenants with grungy 'laneway' feel
German property funds giant Deka has leased more than 12,000 square metres of office space at its 15 William Street tower in the Melbourne CBD following an industrial-style refurbishment and the introduction of end-of-trip facilities.
More than half of the newly occupied space in the A-grade tower has been snapped up by the Commonwealth government, which has secured 7200 square metres on a 10-year term, while media placement company IPG Media has secured 2060 square metres of space for eight years.
Among a total of six deals, IT company Cognizant secured 1400 square metres of space for five years, while Charles River has taken a six-year lease over a 500-square-metre office suite.
The leasing deals follow a strengthening of the Melbourne’s office market in the second half of last year, with the Property Council reporting that the vacancy rate in the CBD fell from 7 to 6.4 per cent over this period.
Deka Immobilien Investment GmbH, the property investment arm of Germany’s Dekabank, acquired 15 William Street in 2009 from AMP Capital for $167 million.
The leasing deals, negotiated by CBRE leasing agents Mark Bolis and Patrick Mount and JLL agents Stuart Colquhoun and Ashley Buller, were struck on net rents in the low to mid $400 per square metre, with market based incentives (currently around 30 per cent) included.
First-class facilities
“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 complementary towel service, drying cupboards, bike maintenance facilities and a bike accessory vending machine,” Mr Bolis said.
Mr Bolis said the new commitments meant just 1000 square metres of space was available for lease – with further areas becoming available later this year.
As part of the refurbishment, Deka responded to occupiers’ desire for character space inspired by Melbourne’s laneway culture by incorporating industrial-style exposed ceilings and services, polished concrete columns and floors, feature lighting and graffiti walls created by recognised local laneway artists.
The building also features a hotel style lobby with various casual meeting spaces and a new pop-up cafe.
The industrialisation of office space has become a trend in Melbourne office refurbishments with the owners of Rialto Tower, Grollo Group and St Martins Properties implementing a similar type refurbishment program to attract new age tenants as part of a major upgrade and development program.
