Leasing success at 80 Collins precinct sets new benchmark rents for Melbourne

Leasing success at 80 Collins precinct sets new benchmark rents for Melbourne

Leading Australian law firm, Ashurst, has been secured as the newest customer to join a number of high calibre businesses at the South Tower currently under development at the 80 Collins Street precinct in Melbourne.

The South Tower is a new 38 level premium office tower and part of the 80 Collins precinct which also comprises an existing 47 level A-grade office tower, a new retail podium and a new boutique hotel. The precinct was acquired by Dexus and Dexus Wholesale Property Fund in May 2019 with the development of the South Tower being managed by the vendor with oversight and leasing undertaken by Dexus.

Ashurst has signed a lease for 10 years commencing in June 2021 across 4,427 square metres on levels 16,17,18 and part 19. Six new customers have been secured across 15,418 square metres, increasing leased space at the South Tower from 63% at acquisition to 97%, and leaving only one floor available to lease.

Melbourne’s record low Prime vacancy rate of 1.8% has supported Dexus securing leases on most of the development’s vacancy in only eight months of ownership, as well as setting new benchmark rents for Premium space in Melbourne.

Chris Hynes, Head of Leasing and Workplace – Office at Dexus, said: “We have a long-standing relationship with Ashurst, also a customer at 5 Martin Place in Sydney, and are delighted to be working alongside them once again to implement a new workspace in Melbourne’s newest premium office building.”

Ashurst Melbourne Office Managing Partner, Ross McClymont, said: “We are delighted to have signed the lease for our new home at 80 Collins Street, and are looking forward to welcoming our people and clients to this exciting next chapter in our long history as part of the Melbourne legal and business community, dating back to 1841. It is a space that will encourage interaction and collaborative work, while providing our clients with the best possible facilities in which to meet and work closely with our lawyers."

The development of the South Tower topped out in August 2019 and is expected to complete in mid-2020.