Latest news with #StKildaRd
News.com.au
30-06-2025
- Business
- News.com.au
St Kilda Rd: Flight Centre's ex-HQ set for new shake-up
Flight Centre Travel Group's former Melbourne headquarters has hit the market with circa $35m price hopes, a sum tens of millions of dollars below its previous sale five years ago. Public records show the 10-storey building at 436 St Kilda Rd last changed hands for $62.15m in 2020. At the time, Flight Centre sold the site to a Melbourne-based property group. Luxe hotel hits market for just $2 — but there's a catch The address has now been listed as an opportunity for investors, owner-occupiers and developers to acquire as a potential residential, build-to-rent or co-living space, subject to council approval. Commercial real estate agency CBRE senior director Nick Peden said the 2322sq m site was close to the new Anzac train station and a spate of planned developments along St Kilda Rd. 'We have definitely had interest from interstate and a couple of offshore groups,' Mr Peden said. Buyers based in Singapore, mainland China and Malaysia have inquired about the property. 'It is about 30 per cent leased and I think there are four tenants,' Mr Peden said. 'It's more of a value-add type of opportunity rather than a passive investment opportunity.' Mr Peden said the reason behind the site's price point was that the market had changed dramatically since Covid. The owners had decided to sell rather than refurbish the tower in an attempt to attract more tenants, he added. The building features 167 at-grade and basement car parks, rear access via Queens Lane, and Melbourne CBD, Botanic Gardens and Shrine of Remembrance views. It's 500m to the Anzac train station which is set to open this year as part of the Victorian government's Metro Tunnel. Other projects taking shape or planned for St Kilda Rd include an $800m, 19-storey tower consisting of 200 apartments, proposed by developer the Gurner Group. Cbus Property has 77 apartments across a 17-level building slated for 37 St Kilda Rd with construction set to finish in 2028. And The Muse Melbourne, set for completion in October, will comprise 40 new residences at 409 St Kilda Rd. CBRE's Jamus Campbell, Kiran Pillai and Trent Hobart have the ex-Flight Centre listing alongside Mr Peden. Expressions of interest close on July 17.
News.com.au
30-05-2025
- Business
- News.com.au
Melbourne's Metro Tunnel project transforms Shrine into hot property
A Metro Tunnel real estate boon is turning Melbourne's Shrine of Remembrance into hot property. The St Kilda Rd and South Melbourne office precinct neighbouring the soon-to-be opened Anzac Train Station opposite the Shrine has been tipped for rent rises of as much as $35 a square metre (8.5 per cent) as the new rail hub comes online this year. It follows another leasing boon along Swanston St where food and retail operators have been signing up long-term leases in anticipation of increased foot traffic in that area. Commercial real estate firm JLL has tracked significant increases in leasing activity in the area, with more than 19,500sq m of office space within the Anzac Station's walking-distance catchment attracting new leases in the past year. While Property Council data indicates Melbourne's CBD has close to a million square metres of office space untenanted, withan 18 per cent vacancy rate, there are now 26 buildings in walking distance of the future train station on St Kilda Rd with full occupancy. JLL head of strategic research Annabel McFarlane said after years of construction disruption the anticipated completion of the metro tunnel, businesses were already moving to take advantage of the area — something that was expected to happen in the years ahead to the Arden-Macaulay precinct on the other side of the CBD. 'We are already seeing it's influence in the St Kilda Road office precinct, with increased office leasing activity around the St Kilda Road ANZAC station site now that the worst of the above ground disruption has come to an end,' Ms McFarlane said. 'We anticipate this to accelerate for this precinct as the benefits of the location become apparent with the opening of the station and businesses seek to access a wider talent pool. 'The businesses are confident that it will give them access to more staff and better foot access for their customers.' Separate research by the firm shows there is an 8.5 per cent premium for city-fringe office hubs within walking distance of train stations in South Yarra and Richmond. 'A similar uplift in average rents to office assets in the ANZAC station precinct of St Kilda Road implies rents could rise from circa $415 per sqm pa to approximately $450 per sqm pa when the Metro rail project completes,' Ms McFarlane said. Ms McFarlane said while needs were changing for many offices, particularly the amount of desk space required, the need for space wasn't necessarily dropping – as many businesses were seeking more meeting rooms and collaborative areas. Ironically, work from home is part of what they believe is driving the demand along the Metro Tunnel. 'Work from home has amplified the importance of well located offices, because you are potentially competing with work-from-home and if you need to have your staff connected in a building, you want to be in a better location to make that worthwhile for your staff to come in,' Ms McFarlane said. Overall, the Metro Tunnel is expected to divert about 32.7 million commuters a year from traditional rail routes. It is expected to open to public use in the coming months, with stores inside the train stations having already attracted strong leasing activity from a mix of dining and retail groups. In addition to Anzac Station on St Kilda Rd, the other new stations will include Parkville and Arden Stations north of the city, as well as CBD stops at the State Library and Town Hall. While already well connected pockets of Melbourne such as Collins St, and particularly the Spring St end of it, were clearly the city's main attractions, and there was ongoing demand for the eastern end of the CBD, the infrastructure boon would have an impact. 'We feel the Anzac Station will have the most noticeable change as it wasn't well connected before,' Ms McFarlane said. While Parkville which is also part of the new tunnels list was already very much in demand for education and biomedical businesses, she added that the future of the Arden-Macaulay precinct on the north side of the city was likely to see a similar result to the Anzac Station pocket over time. 'Arden is the next most interesting, but it's a slow burn,' she said. The JLL research follows separate observations from commercial real estate firm Fitzroys, who have observed plunging vacancy rates for retail venues in Melbourne's CBD. In 2023 there was a 14.1 per cent vacancy rate, by earlier this year it was just 6.1 per cent. But along Swanston St it has dropped to just 2.6 per cent, lower than even the Parliament end of Collins St — regarded as the city's premier commercial precinct. Most of it has been driven by eateries. Fitzroy's director James Lockwood said the shift was coming off the back of anticipation of the Metro Tunnel works being completed and an increase in commuter traffic. Late last year it was also revealed that signiciant leases have been signed within the stations by operators including IGA, People's Coffee, Sushi Sushi, KFC, Starbucks and 7-Eleven.
