Upcoming premium office development Botanicca Corporate Park has secured pre-commitment from an international Grade A tenant, bringing the project to a good start.
A new upcoming premium office precinct in Richmond, Adelaide, will be anchored by an international Grade A tenant after pre-commitment was secured for over 4,000 sq m of space.
The unnamed tenant will become the key occupier at Botanicca Corporate Park - located in Swan Street - after it signed on 4,540 sq m on levels 1 and 2 at Botanicca 8, said Rob Joyes, a director at Colliers International.
The property consultancy negotiated the eight-year lease with Pacific Group of Companies and Icon Developments - joint-venture partners responsible for Botanicca Corporate Park - at a starting rent of AUD 380 per sq m. The tenant was represented by Colliers director Peter Evans.
Botanicca 8 will also have two more levels added to it, increasing the total office space by about 3,500 sq m. Construction is expected to be complete by November 2013. The office block overlooks the Yarra river and is close to Burnley and Hawthorn train stations, Swan Street trams and the Monash Freeway.
Colliers noted that the vacancy rate in Richmond is 4.76%, annual rental growth is 7% and net absorption in the past 12 months was 6,515 sq m, one of the highest in the Melbourne metropolitan market. Besides Botanicca, there were no other new developments scheduled for Richmond, noted Joyes.
Over at 101 Cremorne Street, an expanding IT consultancy is seeking to relocate to the suburb from its old premises in Notting Hill so as to attract a younger workforce. Enterprise Support has signed on a three-year lease for 976 sq m of office space on the property's ground floor at AUD 340 per sq m.
Leah Baxter of Colliers International negotiated the lease, saying "Richmond is without a doubt Melbourne's hot spot for Gen Y workers."
With the new Enterprise Support lease, 101 Cremorne Street is fully occupied.
Tags: Office for lease, Commercial real estate