Golden Age Group is the only developer on track to complete a new strata office building in the Melbourne CBD this year.
The developer said its 130 Little Collins Street is on track to be completed in the third quarter of this year.
It is currently over 75 per cent sold as business owners lean towards owning their own office space rather than leasing it, part of a new trend, according to Cushman and Wakefield international director Oliver Hay.
“In addition to a flight to quality to encourage employees back into the office, we have noticed a clear shift in business owners not renewing leases and instead purchasing a strata office,” Hay said.
“This shift became more evident off the back of Covid, with many businesses stuck in leases for offices they were no longer using, largely as a result of downsizing office requirements off the back of new hybrid working models, but also more and more businesses have started to explore the benefits and flexibility strata office offers.”
Many of the potential buyers are also expanding from Sydney to Melbourne.
Restaurateur Chris Lucas bought two levels of commercial space in the building in May 2023 while another buyer purchased a half-floor office for $2.89 million.
“We created an environment that was less like a commercial office, but more like a lifestyle hotel,” Golden Age Group development director Damien Hehir said.
“The ultimate goal was to develop a product and give people an opportunity to own a piece of Melbourne’s prestigious east end.”
The 28-storey tower was designed by Cox Architecture, Hecker Guthrie and Jack Merlo.
Office spaces occupy levels 2 to 27 and offer 2.7m-high ceilings.
There are end-of-trip facilities, bicycle storage spaces and a communal garden rooftop terrace.
Owners could have complete control over fitout with depreciation benefits for new acquisitions and the opportunity for capital growth or rental income, Golden Age said.
Strata-titled office buildings account for 5 per cent of Melbourne CBD’s current office supply, according to Cushman and Wakefield.
Much of that supply is buildings built before the 1990s, which has been partly why the City of Melbourne is encouraging owners to retrofit their buildings to stay competitive in the market.
The last purpose-built strata office building before 130 Little Collins Street was 41X on Exhibition Street, completed in 2014. Offices in that block have more than doubled in value since then.
Golden Age Group is known for large-scale projects such as Sky Garden, the country’s largest air-rights development, Collins House, Sky One in Box Hill and The Harrington Collection at The Rocks in Sydney.
It also has a property portfolio across the residential, hotel, mixed-use, commercial, industrial and the house and land sectors.
