There is a big push by property developers for new city towers nationwide, based on an expectation that Post Covid, staff will return to the city and apartment living will see a surge.
Developers are putting up designs which offer more flexible offices, and co-working spaces and ways of buying and renting city properties, but many are stuck trading at a discount.
But due to higher vacancy levels they need incentives required to attract new tenants.
Companies are stuck trading at lower levels while rents are under pressure.
Mirvac has just won planning approval for a new mixed-use precinct at 7 Spencer Street on Melbourne’s Northbank, paving the way for building to kick off later this year.
The development will include a 45,000sqm office tower and a build-to-rent building, known as LIV Aston, with 472 apartments designed for renters.
Mirvac is pitching the project as focussing on wellness, sustainability, and amenity, with “green retreats” for workers and residents. The development can accommodate about 5000 workers when complete in 2024.
The 32-level tower will have units ranging from studios to 3-bedroom apartments as well as a pool, gym, co-working spaces, multimedia and wellness room and business lounges.
The office tower will have 20 levels, with floor plates of up to 3000sqm, and sport sustainability features.
In the Adelaide CBD, Charter Hall secured federal government agency Services Australia as the major pre-commitment tenant at a new $450 million project – the largest leasing deal of the year.
The 10-year lease to Services Australia at 60 King William Street is one of SA’s largest office precommitments covering 28.500sqm across 10 floors.
More than 2200 staff will move to the new complex in 2023. The building will sport innovative features including touchless bathroom amenities, a wellness centre and 3000sqm floor plates.
