Leasing coup for property team - Bennelong Funds Management

Despite global property market uncertainty, Bennelong Funds Management's (Bennelong's) property team has secured two significant whole-building tenancies in suburban Melbourne in recent weeks. Over the last three months, three significant deals have meant the leasing of 13,000-14,000 square metres of commercial office space in the city's suburbs.

After signing one of Melbourne's largest suburban office lease deals in over five years, Skilled Group Limited will relocate its Melbourne headquarters to Bennelong's 292 Burwood Rd Hawthorn building. In addition, Australian Pharmaceutical Industries Limited (API) has leased a five-floor office building at 250 Camberwell Road at Camberwell Junction.

Bennelong's property team has enjoyed considerable leasing success this year, largely driven by positive demand in Melbourne's suburban commercial property market. Scott Davies, Managing Director of Bennelong's property division, said whilst the broader property market remains hesitant, there is clearly strong demand amongst mid-sized corporates.

"The API and Skilled Group deals show there is real desire amongst medium-sized businesses to consolidate and reposition their businesses through the leasing of quality office space. There is heat in these segments of the market and as a result, we ‘re seeing a very positive shift in effective rentals for some properties. It augers well for a near-term kick off into the next development cycle of inner suburban office supply, which will naturally lift the overall performance of established stock," Scott said.