East Melbourne reaches record low office vacancy rates

East Melbourne has recorded the lowest office vacancy rate of any CBD and non-CBD market in Australia.

According to the latest data from the Property Council of Australia (PCA), East Melbourne has a total office stock of 183, 781 square meters and a direct vacancy factor of 2.2.

Only West Perth, at 4.5 per cent, comes close to equaling East Melbourne’s current vacancy rate.

East Melbourne is one of Victoria’s most affluent suburbs and contains some of the oldest homes, parks and gardens in Melbourne, in addition to the iconic Melbourne Cricket Ground (MCG).

Savills Australia’s senior leasing executive, Louise Nicoll, said boutique office space is rarely available in the exclusive suburb.

“East Melbourne is not a big market but it has a lot to offer in terms of its location on the doorstep of the CBD, its architecture, its close proximity to upmarket residential space, and its overall character and ambience,” Ms Nicoll said.

“Ironically, the fact that there isn’t any space available only seems to make it even more desirable and that has intensified the demand.”

Melbourne-based private investor, Brendan Sullivan, recently leased an entire floor of his building opposite the MCG and agreed that the demand for space in East Melbourne was very good.

“The space had a cool makeover to appeal to the boutique market but enquiry is always good in this market and in this case was really quite remarkable, indeed it bought several offers and ultimately leased very quickly,” said Mr Sullivan.