- The $1 billion complex is home to an 8-storey office tower
- CBD prime office rent increased by 4.6% year-on-year
With significant pockets of public and private sector workers slowly returning to the office, Schiavello Group has announced the successful leasing of over 8,000sqm of office space at M-City.
Along with office space, the $1 billion complex in Melbourne’s south-eastern suburb of Clayton, is home to a hotel, cinema, restaurant and medical precinct and four residential towers.
Sigma Healthcare has leased 5,238sqm of space while retail company Zoo – who is behind brands such as Boost Juice, Betty’s Burgers, Salas Fresh Mex and Cibo Espresso – has leased a whole floor, totalling 1,746sqm.
Open Office, a ReadyTech Holdings subsidiary, has leased 1,150sqm of space.
The leases, which range between five and 12 years in length, account for 70% of total office space.
Vito Chiodo, Schiavello Property Director, said the group’s long history in designing and building office had put them at good stead when providing turnkey design and fit-out solutions to occupiers.
“Since completing the M City precinct two years ago, we have continued to welcome new members to our community. We now welcome our latest customers who join the likes of retail, residential and hotel patrons,” Mr Chiodo said.
“Our passion was to create an enriched and connected community within a truly mixed-use development, which we can proudly say we have now achieved.”
The office lease agreements were secured by Gianni Macdonald and Anthony Park of CBRE, along with JLL’s Mario Nobreag and Joshua Tebb.
“As organisations increasingly leverage their premises to entice staff back into the office, worker flexibility and location were key themes in our dialogue with these new M-City occupiers,” Mr Macdonald said.
“M-City provides incredible onsite amenities rarely available in Melbourne’s south- eastern office market, enabling occupiers to be housed in a mini-city with all the retail facilities they could ever want,” Mr Nobrega added
Office rents in Melbourne rise
The demand for office space at M-City comes as Cushman & Wakefield revealed that year-on-year prime net effective office rents in Melbourne’s CBD increased by 4.6% during the first quarter of 2022.
This comes despite the working from home boom, and perhaps workers choosing to work at offices closer to residential areas – such as Clayton.
“The consolidation of incentives is reflective of a market that has seen a welcomed increase in the number of enquiries, but still has a variety of tenant options available across quality office accommodation,” said the Cushman & Wakefield report.
“As the recovery gathers pace in Australia’s two biggest States, their return to greater proportions of our economy should also be reflected in workers returning to the CBD.”
Prime rents now average $410 per sqm. B-grade office space recorded $335 per sqm.
