New Government Tenant Signed for Downtown Melbourne Office Tower
Melbourne, Australia 4 November 2019
Charter Hall has signed the Australian Federal Police (AFP) to fill its entire 20-story 140 Lonsdale Street office tower.
More than 560 workers will relocate from 383 La Trobe Street as the AU$300 million (US$207 million) Lonsdale Street tower reaches completion in late 2022.
The AFP Melbourne office will lease 22,750 square meters of dedicated tenancy space, along with 135 car parking spaces as part of the 30-year lease, which includes two additional five-year options.
The AFP Melbourne state office received parliamentary approval for AU$98.43 million (US$68 million) of upgrades to the building and AU$63.43 million (US$44 million) in landlord incentives as part of its agreement for the lease with Charter Hall.
The AFP will join tenants AustralianSuper, Cbus and the Uniting Church in Charter Hall’s AU$1.3 billion (US$897 million) Wesley Place precinct. The 110,000-square-meter Wesley Place, the largest office precinct in Melbourne’s CBD, is now almost fully-leased.
Melbourne CBD office vacancy remains the tightest in the country, with a 3.7 percent vacancy rate and prime grade vacancy rates tightening to 2.1 percent, the lowest level since 2008 according to JLL’s third quarter office market report.
By financial year 2022, as Charter Hall’s 140 Lonsdale tower reaches completion, stock will have increased 9.3 percent, nearly double the rate of Sydney’s CBD.
The AFP’s new headquarters will face Little Lonsdale Street and Hayward Lane in the northeastern core of Melbourne’s CBD.
The AFP ruled out Cbus Property’s 311 Spencer Street, set to house the Victorian Police headquarters, as part of its shortlisting process.
Building contractor Lendlease will integrate the upgrades and fit-out requirements during construction. The AFP will be responsible for building’s fit-out, establishing a project office on site to carry out the administration of the agreement for lease.
Charter Hall has amended the planning permit to fit the AFP’s design and upgrade requirements to the building. The building is due for completion in December 2022—the AFP’s lease expires at 383 La Trobe Street in the same month.
Work is due to start in November 2019.
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