High hopes for South Yarra’s 627 Chapel St office tower post coronavirus
It’s a massive $300 million development with no secured tenants. But agents are confident workers will head out of the CBD post-coronavirus and use a huge South Yarra office complex that is under construction.
Inner East
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Agents leasing space in South Yarra’s new 24 storey office tower are confident it won’t become a white elephant with empty floors following the coronavirus outbreak.
Construction began in November for the $300 million project at 627 Chapel St, next to The Olsen hotel and near the Como Centre and Capital Grand.
It is based on a prime island block and will also be accessible from surrounding Daly St and Almieda Crescent.
Stonnington Council recently approved amendments to the tower’s basement, floor to ceiling heights and bicycle parking area.
Two agencies — Cushman and Wakefield and Colliers International — are leasing office space in the tower, which will also have food and retail on the ground level.
Colliers agents Travis Myerscough and Matt Cosgrave said while no major tenants had been locked in, they had received “strong interest” from a diverse range of companies.
“Things are obviously a bit challenging from an office leasing perspective, but the project is going really well and has been well received,” Mr Cosgrave said.
Mr Myerscough said the tower’s location would make it an attractive option for city-based workers and companies following the coronavirus outbreak.
“If anything, we’re going to see people come out of the CBD more, and work closer to home,” he said.
Mr Myerscough expected “a bulk of activity and rental sign-ups” in the 12 months leading to the tower’s expected completion date in October 2021.
Chapel St Precinct Association general manager Chrissie Maus said the arrival of the tower and more office workers would be a huge boost for its traders.
“There’s evidence of people not wanting to go back into their CBD office and live with amenities at their feet,” Ms Maus said.
“It’s going to be a major advantage for us in the future, and this development plays a part in that.
“The more people we can have working from home and living as close to Chapel St as possible is certainly is going to be a positive for our economy.”
Developer Goldfields has been contacted for comment.
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