Commercial

<p>The Brisbane City Council has just received an exciting new commercial development application, with a proposal lodged over the vacant block at 166-188 Breakfast Creek Road, Newstead, next to the Bunnings.&nbsp;⁣</p>

<p>The main 3,686 sqm block of land was offloaded by Bunnings in 2017 for $13,475,000. It was bought by Associated Finance Pty Ltd, whose directors Martin Ward, Sophie Moore, Keith Thornton and Denis Stark are part of the ASX-listed Eagers Automotive giant.<br />
⁣<br />
Designed by Arkhefield, the eight&nbsp;floor building features almost 19,000sqm of lettable area, a child care centre, day spa, ground floor retail tenancies and a lush rooftop terrace within the leafy, subtropical commercial scheme.</p>

<p>&ldquo;The intent of the development is to support the continued growth and revitalisation of the Breakfast Creek Precinct, and of the gateway to the inner city more broadly,&quot; the application from Mewing Planning Consultants read.</p>

<p>The proposal sits five&nbsp;commercial floors atop a striking podium, and is capped off by a heavily landscaped terrace that includes an artificial lawn space and a stage/band platform. Each commercial floor also contains river-facing balconies which are oriented to capture the views of Breakfast Creek, Newstead House and the Brisbane River.&nbsp;⁣<br />
⁣<br />
Designed by Arcadia, they noted their intention to use a lighthouse as the basis of their landscape narrative - aiming to have the building serve as a beacon for those entering Brisbane City from the north along Kingsford Smith Drive.&nbsp;⁣<br />
⁣<br />
The building would certainly be a nice addition on the block which has been vacant as long as I can remember, and serves as a reminder that Newstead is booming across every sector.&nbsp;</p>

<h2>Developments in Newstead</h2>

<p>[smartcode_project:default project_id=90553]</p>

<p>Mirvac have recently released their latest tower in their billion dollar Quay Waterfront Newstead development.</p>

<p>The latest tower, Sky Precinct, located alongside the Brisbane River, join&#39;s previously completed stages Pier, Park and Unison as part of the grander Waterfront Newstead community.</p>


Designed by Arkhefield, the eight floor building features almost 19,000sqm of lettable area

Joel Robinson

Newstead set for new commercial centre

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<p>Savills have advised clients on what they see as the <span style="line-height: 1.3em;">four advantages of </span>utilising<span style="line-height: 1.3em;"> SMSF for direct commercial property investment, in preference to other asset classes.</span></p>
<ol>
<li><span style="line-height: 1.3em;">Commercial property is one of the few assets that can be bought by an SMSF from its members. Your SMSF can potentially buy your own business premises and then you can pay rent to your SMSF. <br><br>A residential property, on the other hand, cannot be lived in by a fund member or any fund members’ related parties, nor can it be rented by a fund member of any fund members’ related parties. <br><br></span></li>
<li>
<span style="line-height: 1.3em;">The </span><span style="line-height: 1.3em;">MoneySmart</span><span style="line-height: 1.3em;"> website details the strict rules against using borrowed funds to make improvements to residential property that forms an asset in your SMSF portfolio, so don’t even think about buying a renovators’ delight. This can severely limit potential capital gains as you cannot renovate it to increase its value. <br><br>In contrast, an investment such as a bulk storage unit or warehouse has very low capital expenditure requirements.<br><br></span>
</li>
<li><span style="line-height: 1.3em;">Commercial leases are typically for a longer period than residential leases – usually around five years with a further option for another five years with incremental rental increases built into the lease. <br><br>If you choose the right property and tenants with stable businesses which are unlikely to be adversely affected by an economic downturn you won’t have to deal with a regular turnover of tenants and can rely on a steady rental return. <br><br></span></li>
<li><span style="line-height: 1.3em;">Many industrial properties are purely functional in design and construction, so there is less concern about tenants maintaining them or investors having to pay for costly renovations, which is often the case with residential property investments. <br><br>That said, it’s important to ensure any essential, expensive upgrades, such as those required to meet new fire safety or health and safety standards, have already been carried out before investing in a commercial premise.</span></li>
</ol>
<p><span>Visit the </span><span><a href="https://www.asic.gov.au/" target="_blank" title="Australian Securities and Investments Commission ASIC">Australian Securities and Investments Commission (ASIC)</a></span><span> website to familiarise yourself thoroughly with all the rules and regulations surrounding SMSFs and property investment.</span></p>
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jchancellor-FAypfDUnLy

Four reasons why commercial and industrial property suits SMSFs: Savills

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<p><span>So why choose commercial property over residential?</span></p>
<p><span>Obviously this is the question every residential investor asks… whenever they are considering the transition across to commercial property.</span></p>
<p><span>However, you will quickly discover the reasons are rather compelling.</span></p>
<p><span>Reason #1: Your tenants stay for longer</span></p>
<p><span>For the most part, you find residential tenancies will be on a month-by-month basis… maybe 6 months, perhaps for a year if you’re lucky.</span></p>
<p><span>Whereas commercial leases will tend to range between 3 and 5 years - and it can often be for longer. That means you have fewer tenancy changes, and a far more predictable income stream.</span></p>
<p><span>Reason #2: You have greater control</span></p>
<p><span>When residential tenants wish to leave half-way through a lease, they simply need to find a suitable substitute tenant. And then, they will transfer the lease across to that person.</span></p>
<p><span>From there on, this new tenant becomes responsible for the rental, over the remainder of the lease term.</span></p>
<p><span>Whereas commercial tenants are running a business from your property. And whenever they sell their business, they also require your approval to “assign” the lease.</span></p>
<p><span>However, here’s the real difference: If the new commercial tenant defaults in paying the rental, you also have recourse to the previous tenant as well - because commercial leases are business contracts, enforceable by law.</span></p>
<p><span>Reason #3: You no longer need to pay the outgoings</span></p>
<p><span>Typically, residential properties will provide you with a 5% gross rental return.</span></p>
<p><span>From this, you need to pay the rates &amp; taxes, insurance, maintenance and so on — leaving you with about a 2.5% to 3% NET return, at the end of the year.</span></p>
<p><span>Depending upon what (and where) they are… commercial properties will generate a 5% to 9% NET rental return, each year.</span></p>
<p><span>And that’s because commercial tenants are also required to pay the various building outgoings <em>on top of their rental</em> - making this a true NET rental return for you.</span></p>
<p><span>Reason #4: Commercial tenants maintain your property</span></p>
<p><span>As you know, if the toilet stops working in an apartment … the tenant asks you to send around a plumber. Whereas commercial tenants quickly attend to (and pay to fix) the problem themselves - so as not to disrupt their business.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Furthermore, the overall appearance of the property becomes a reflection on them. As such, your property is maintained in top condition … at their expense.</span></p>
<p><span>Therefore, whether the lease requires it or not … most commercial tenants will regularly repair and repaint the property, in order to maintain a good corporate image.</span></p>
<p><span>Reason #5: Greater regularity with rental payments</span></p>
<p><span>Most residential properties are rented by individuals. Therefore, the rent is often paid in cash, by personal cheque or by direct transfer. And this can often vary in its timing.</span></p>
<p><span>Because they are running a business, commercial tenants consider rent as simply another regular expense each month.</span></p>
<p><span>And generally, this gets set up as an automatic Periodic payment - and can be specified as such, within the lease.</span></p>
<p><span>Bottom Line: In essence, you find yourself having to deal with the vagaries of individual people… as a residential investor.</span></p>
<p><span>However, when you become a commercial investor… you start to enjoy a more predictable long-term relationship with your tenants - based upon a proper business footing.</span></p>
<p><span>Doesn’t that sound like a far better arrangement - particularly when you can purchase a small office for the same price as a two-bedroom apartment?</span></p>
<p><strong><em>Chris Lang </em></strong><em>is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can contact Chris <a href="https://commercialpropertymadeeasy.com" target="_blank">here</a>.</em></p>
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chrislang-EQKojcgJPV

Why choose commercial property over residential? Chris Lang

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<div>The ABS released its Lending Finance figures for August 2015 this morning.</div>
<div> </div>
<div>August was a weaker month for commercial lending, with the trend estimate declining by -2.1% in the month to $44.1 billion, having peaked at more than $48 billion back in April.<br><br>The trend certainly appears to be softening in sympathy with weak capex intentions surveys and macroprudential measures to trim back property investment loans - but then, that's been said before through this cycle, so time will tell. </div>
<div> </div>
<div>On the other hand, home lending to owner-occupiers is now trendng up sharply, with the seasonally adjusted result showing a +6.1% leap in August, and the trend estimate bolting +18% higher over the year. </div>
<div> </div>
<div>Significantly, AMP announced today that it would chop a variable rate home loan package available to owner-occupiers to a highly competitive rate of just 3.99%.</div>
<div> </div>
<div>It seems likely that the major banks will be targeting this sector hard in the months ahead.<br><br>Total lending finance has also trended down a little from an April peak.</div>
<div> </div>
<div><a href="/images/2015/10/13/A1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/13/A1.jpg" alt=""></div>
<div> </div>
<div><span>Charted below is what at face value is happening to owner-occupier home loans at the state level, which is to say now apparently burning up in the most populous states.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/10/13/OwnerOccupiersRolling12m.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/10/13/OwnerOccupiersRolling12m.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>In obliquely related news, the latest credit card figures from the Reserve Bank showed that Aussies are clearing credit balances more comfortably than before, with balances down over the year and more of us opting to pay off balances by the due date.</div>
<br><strong><span style="text-decoration: underline;">Switcheroo</span></strong><br><div> </div>
<div>For the remainder of 2015, the housing market story will largely be a tale of whether banks and borrowers can find a way to shoehorn owner-occupier lending higher in order to offset any pending declines in investor loans.</div>
<div> </div>
<div>In August the answer was seemingly at an emphatic "yes" with investor loans essentially flat at $13.6 billion but owner-occupier commitments ripping more than <a href="https://petewargent.blogspot.co.uk/2015/10/housing-finance-shock" target="_blank">+6 per cent higher</a> to $20.8 billion. </div>
<div> </div>
<div>In this regard, the AMP decision to cut its variable rate to below 4 per cent effective from today appears to be a clear statement of intent.</div>
<div> </div>
<div>That said, the August figures may yet prove be <a href="https://petewargent.blogspot.co.uk/2015/10/housing-finance-shock" target="_blank">bogus</a> to some extent, and another month or two of data will shed more light. </div>
<div> </div>
<div>In the words of one eminent Chief Economist "we can conclude that the figures have suddenly become a lot murkier", while Westpac instead opted for a more canine theme in describing the latest data as "a dog's breakfast".</div>
<div> </div>
<div>Overall it seems that the macroprudential story has some way to run yet before the waters are de-murkified (or the dog's morning meal is digested). </div>
<br><span>I looked at this in more detail in relation to last week's Housing Finance release </span><a href="https://petewargent.blogspot.co.uk/2015/10/housing-finance-shock" target="_blank">here</a><span>.</span><br><br><div><strong><span style="text-decoration: underline;">Investor loans cooling...</span></strong></div>
<div> </div>
<div>Of course the flip side to the new-found strength in the homebuyer space is that property investment loans should now be cooling in response to APRA's calming macroprudential measures.</div>
<div> </div>
<div>On a rolling annual basis New South Wales originated investor loans climbed to a new high of $67.6 billion, but there have now been two consective months of declines in original terms from the May 2015 monthly peak of $6.6 billion.</div>
<div> </div>
<div>Although investment loans remained at a high level in Victoria and Queensland, there has been a general cooling of this sector across recent months.</div>
<div> </div>
<div><a href="/images/2015/10/13/LF1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/13/LF1.jpg" alt=""></div>
<div> </div>
<div>
<span>Since the investment loans data is not seasonally adjusted I also look at it on a 12mMA basis, and we can see that while the trend in Queensland has risen to its highest level since April 2008, the trend is now falling in Western Australia, South Australia and Tasmania.</span><br><br><span>In the Northern Territory the trend in investment loans seems to be dropping off a cliff so there is likely to be some fallout for Darwin.</span><br><br><span>More on all of these figures and trends to follow tomorrow.</span><br><br><span>The detailed monthly investor loans figures for New South Wales show loans tracking at $5.53 billion in August, down from the all-time record high of $6.62 billion in June.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/10/13/LF3.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
</div>
<div><span><img src="/images/2015/10/13/LF3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>Looking at total lending for housing in New South Wales, the total housing market finance for August surpassed $13 billion for the third time, however it could not quite match the record levels seen in June.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/10/13/LF2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/10/13/LF2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div class="separator"> </div>
<div class="separator">The most important release of the week will be the Labour Force data for September on Thursday morning. </div>
<div class="separator">
<br>Expecting to see a flat result for the month, both for total employment and the unemployment rate.</div>
<div class="separator"> </div>
<div class="separator">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
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pwargent-M4siyDbqQY

The housing market switcheroo: Pete Wargent

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<p>While the anticipated trend might be a post-pandemic pivot away from office to residential projects, one Melbourne developer is sticking to their original intentions.</p>

<p>Developer DeGroup will embark on their new $70 million office tower in Melbourne’s CBD despite concerns over rising vacancy rates.</p>

<p>Founder Colin DeLutis said the group was more than confident that the new building would find a ready leasing market.</p>

<p>Located at 263 William Street, in the heart of Melbourne’s legal precinct, the project is set to rise 75 metres above the Metropolitan Hotel which will be retained with a suite of restoration works.</p>

<p>"With nothing new and modern having been built in the legal precinct for over 20 years, we are quite bullish about the market and very confident about the building’s leasing potential”, DeLutis said.</p>

<p>The company’s confidence diverges from commentary by property experts who have expected a lessening of demand for commercial developments in the Melbourne CBD.</p>

<p>“We’re going to see CBD office buildings converted into residential,” Kernel Property’s Steve Urwin said in July.</p>

<p>This has been supported by recent national office statistics for Q3, released by JLL.  </p>

<p>“The extended lockdown in Melbourne has negatively impacted the leasing market with the availability of backfill space and sublease space contributing to the uplift in vacancy”, said JLL’s head of leasing Tim O’Connor.</p>

<p>According to JLL’s insights, the Melbourne CBD recorded -70,100 sqm of net absorption over the quarter and vacancy increased to 11.3 per cent in 3Q20. </p>

<p>The presumed push away from offices has yet to influence some Melbourne’s commercial developers who are confident that businesses and their clients want COVID safe, hygienic spaces.</p>

<p>The 20-storey, 7,013sqm building, offers 3,799sqm of office space over 17 levels and features an 822sqm multi-level restaurant and bar.</p>

<p>The self-contained office floors will feature kitchenettes, shower facilities, natural light from all sides and views of Flagstaff Gardens and the surrounding CBD.</p>

<p>Crema Constructions have been appointed as builders of the WMK Architecture designed building.</p>

<p>The tower is due for completion in 2022.</p>
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While the anticipated trend might be a post-pandemic pivot away from office to residential projects, one Melbourne developer is sticking to their original intentions

max.kwok_55688

DeGroup to go ahead with $70m office tower in Melbourne CBD

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<p>Two projects touted by their respective developers as being exceptional developments in waiting have instead been put on the market as permitted opportunities.</p>

<p>In <a href="https://www.urban.com.au/new-apartments/north-melbourne-vic">North Melbourne</a>, <a href="https://www.urban.com.au/developers/fridcorp">Fridcorp</a> has chosen not to develop <a href="https://www.urban.com.au/new-apartments/3-15-shiel-street-north-melbourne">3-15 Shiel Street</a>, which until recently had been dubbed Wild Apartments. In light of approval being granted during May, Fridcorp along with joint venture partners Daniel Besen and Wingate had expected to launch the project to market this year.</p>

<p>The associated media release at the time of approval specified an expected September sales campaign launch with construction slated to begin in the first quarter of 2019. Despite earlier intentions of seeing the project to fruition, <a href="https://www.cbremelbourne.com.au/properties/3-15-shiel-street-north-melbourne/">CBRE City Sales has been instructed to move the 1,311 square metre site on</a>.</p>

<p>Approval is in place for the $65 million residential project in North Melbourne’s evolving Arden Urban Renewal precinct. <a href="https://www.urban.com.au/architects/elenberg-fraser">Elenberg Fraser's</a> design for Shiel Street includes 82 one, two and three bedroom apartments over nine levels, supported by 70 basement car parks and an extensive rooftop terrace.</p>

<p>During May Fridcorp founder and director, Paul Fridman said “North Melbourne is a new market for Fridcorp but, together with Daniel Besen and Wingate, we saw an opportunity with the Victorian Planning Authority’s proposed Arden precinct to deliver quality medium-density housing in Melbourne’s inner-ring that will provide long-term investment potential and growth for owner-occupiers and investors."</p>

<p>Fridcorp picked up the North Melbourne site from fellow developer <a href="https://www.urban.com.au/developers/spec-property">SPEC Property</a> during 2016 and went about reworking the previously permitted design onsite with Elenberg Fraser.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image105_2.jpg" rel="gallery-all" title="3-15 Shiel Street. Image: Elenberg Fraser"><img alt="" class="image-article-full-width-580px" height="326" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image105_2.jpg?itok=40vCl4BK" title="3-15 Shiel Street. Image: Elenberg Fraser" width="580"></a>

<figcaption>3-15 Shiel Street. Image: Elenberg Fraser</figcaption></figure><p>Also offered for sale is <a href="https://www.urban.com.au/projects/329-johnston-street-abbotsford">Abbotsford's 329 Johnston Street</a>.</p>

<p>The <a href="https://www.urban.com.au/architects/fieldwork">Fieldwork-designed</a> application had initially sought a mixed-use outcome incorporating retail, medical suites, offices and 41 serviced apartments in a building veiled in expanded mesh. In order to gain approval the design was trimmed to seven levels, with the serviced apartment component dropped in favour of an increased net leasable area of 6,517 square metres.</p>

<p>Based on a cross laminated timer design, 329 Johnston Street was to have provided a carbon-neutral construction method with an abbreviated construction time frame.</p>

<p>Dubbed <a href="https://329johnston.com/">Sol House</a>, Pirovich describes 329 Johnston Street as "seeking to achieve Passive Haus, giving future occupiers of the building a happier and healthier place to work, rest and play. As part of the new development we are setting the building back at ground level and ceding over 200 square metres of the site to the public realm."</p>

<p>Savills have instead been appointed to market the 1,912 square permit approved corner site.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image112_3.jpg" rel="gallery-all" title="329 Johnston Street. Image: Fieldwork"><img alt="" class="image-article-full-width-580px" height="386" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image112_3.jpg?itok=iOdx7cKQ" title="329 Johnston Street. Image: Fieldwork" width="580"></a>

<figcaption>329 Johnston Street. Image: Fieldwork</figcaption></figure><p>Pirovich joins fellow developer <a href="https://www.urban.com.au/developers/alpha-14-property-group">Alpha14 Property Group</a> in offering for sale a permitted commercial site within City of Yarra.</p>

<p>Alpha14 Property Group had advanced <a href="https://www.urban.com.au/projects/71-93-gipps-street-collingwood">Collingwood's 71-93 Gipps Street </a>to construction tender with the intent of beginning construction on the 1,579 square metre site this year. Instead the site and Hayball-designed office building have been listed for sale with <a href="https://www.urban.com.au/developers/colliers-international">Colliers</a>, incorporating an approved net leasable area of 8,426 square metres.</p>

<p>It is likely that the offering of both permitted and prospective office-driven development sites within City of Yarra will increase due to the torrent of commercial applications currently within the municipality.</p>

<p><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image111_6.jpg" rel="gallery-all" style="text-align: center;" title="Gipps Street opportunity. Image: Hayball"><img alt="" class="image-article-full-width-580px" height="435" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image111_6.jpg?itok=guQSDWLm" title="Gipps Street opportunity. Image: Hayball" width="580"></a></p>

<figure><figcaption>Gipps Street opportunity. Image: Hayball</figcaption></figure>
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silvermb

Fridcorp and Pirovich opt to drop their respective development opportunities

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<p>It hasn't materialised yet, but there's more than enough evidence to show that the eastern reaches of Richmond's Swan Street will become one of Melbourne's premier suburban development pockets.</p>

<p>The notion has been reinforced by two fresh commercial development applications that not only underpin Swan Street's looming development credentials, but those of City of Yarra's in general. The flight of developers to the municipality seeking to create 'new experience' commercial developments had been well documented of late.</p>

<p>Swan street though has yet to see any tangible construction activity, save for Olor Apartments. At 306 Swan Street, Olor with its 31 new apartments over 7 levels is the first salvo in a development push that will likely change the fundamental complexion of Swan Street east of Bridge Road.</p>

<p>Characterised by small retail and commercial premises along its flanks, Swan Street has a <a href="https://www.yarracity.vic.gov.au/the-area/planning-for-yarras-future/adopted-strategies-and-plans/structure-plans-and-local-area-plans">structure plan in place</a> that will allow for the transition away from an intimate small-scale streetscape to a medium and high-rise outcome, particularly so when heading east toward Burnley Station and surrounds.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image13_26.jpg" rel="gallery-all" title="Bruce Henderson's latest alongside t-a square's effort"><img alt="" class="image-article-full-width-580px" height="255" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image13_26.jpg?itok=SSwXMwVi" title="Bruce Henderson's latest alongside t-a square's effort" width="580"></a>

<figcaption>Bruce Henderson's latest alongside t-a square's effort</figcaption></figure><p>The developments in waiting are a clear indication that developers consider the area prime for renewal. Latest to enter the Urban.com.au project database are a duo of boutique commercial developments.</p>

<p>439-443 Swan Street is a Bruce Henderson Architects-designed complex for Swan Street Property Pty Ltd. 10 levels is sought for the 603 square metre corner site, with a Net Leasable Area of 3,467 square metres.</p>

<p>A rooftop terrace and provisions for 54 vehicles and 43 bicycles are rolled into the design. Another 'pocket' development claiming a small development site is 389-393 Swan Street; t-a square architects have conceived a 9 level office complex incorporating 1,548 square metres of Net Leasable Area.</p>

<p>Both these projects join 345 Swan Street as being ideal smaller tenants or strata uses based upon site size and floorplate limitations.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image14_21.jpg" rel="gallery-all" title="Minicon have begun site works on Farmer, Cutter and Swan"><img alt="" class="image-article-full-width-580px" height="326" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image14_21.jpg?itok=lQWdnyJk" title="Minicon have begun site works on Farmer, Cutter and Swan" width="580"></a>

<figcaption>Minicon have begun site works on Farmer, Cutter and Swan</figcaption></figure><p>Highlighting the mixed-use nature of the emerging precinct, a quartet of developments are devoted to apartment and serviced apartment living.</p>

<p>Builder Minicon has taken Farmer, Cutter and Swan's 53 apartments to construction whilst Mitpit Constructions has signage up over 314-320 Swan Street. The Ewert Leaf-designed project will add private apartments, commercial office space and a sizeable serviced apartment component to the area.</p>

<p>Also looking to add serviced apartments is 291-295 Swan Street which went to planning during June. </p>

<p>Next to launch publicly is TWO51. Backed by Blueprint Projects the pending sales campaign will launch 28 luxury apartments in to the marketplace at 251 Swan Street.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image22_18.jpg" rel="gallery-all" title="Swan Street's largest trio "><img alt="" class="image-article-full-width-580px" height="480" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image22_18.jpg?itok=3nREoAYO" title="Swan Street's largest trio " width="580"></a>

<figcaption>Swan Street's largest trio</figcaption></figure><p>The balance of projects destined for Swan Street are also the biggest. </p>

<p>A permit is in place for the Bruce Henderson Architects-designed 370-374 Swan Street whilst 484-486 Swan Street is still at planning. Both commercial developments could add a combined 28,400 square metres of commercial office space to what is essentially a virgin area in terms of catering for major tenants with new commercial builds.</p>

<p>The closest precinct to see such large sized tenants drawn to the area is the Botanicca corporate park in adjacent Burnely.</p>

<p>Last cab off the Swan Street rank is 462-482 Swan Street with Bamfa Properties hoping to realise 200 plus apartments within dual buildings designed by Elenberg Fraser. Earlier designs for the site reached 17 levels although the current bid reaches 10 and 12 levels respectively.</p>

<p><span style="font-size:10px;">Lead image: Bruce Henderson Architects</span></p>
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Future intent - profiling the impending rise of Swan Street

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<p>Two firms with a history of development within the Monash National Employment and Innovation Cluster (MNEC) are angling for bigger projects.</p>

<p>Both Salta Properties and Cedar Woods are pushing plans which are larger than their previous respective developments within Monash. Salta is all but assured of the right to build a substantial office complex as an extension of its Nexus Corporate precinct whilst Cedar Woods is pushing for hundreds of new dwellings within its Jackson Green development.</p>

<p>At either end of the MNEC, both intended developments speak to the increasing scale of development expectations in the area. These expectations would only be enhanced by the State Government's proposed Melbourne orbital rail proposal which has two stations in the heart of MNEC.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image70_11.jpg" rel="gallery-all" title="Image: Gray Puksand"><img alt="" class="image-article-full-width-580px" height="287" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image70_11.jpg?itok=QGVFLamR" title="Image: Gray Puksand" width="580"></a>

<figcaption>Image: Gray Puksand</figcaption></figure><p>Salta last week received backing for its proposed office complex at 633-647 Springvale Road, after nabbing the corner site for a reported $11 million during 2015.</p>

<p>Adjacent to Salta's existing Nexus Corporate precinct and spanning 2.4 hectares, the first phase of the Springvale Road development site found favour with Monash City Council and encompasses 21,226 square metres of net leasable area. That space is configured over two separate buildings with Gray Puksand undertaking the design.</p>

<p>Existing campus-style buildings within Nexus Corporate have traditionally been smaller in stature to date; the freshly completed Nexus 10 building holds in excess of 6,000 square metres of net leasable area. </p>

<p>The upsizing of expectations for 633-647 Springvale Road also includes a very substantial 785 basement vehicle spaces, end of trip facilities and provision for 197 bicycle bays.</p>

<p>Two additional future buildings are slated for the balance of 633-647 Springvale Road, whilst Salta also has an eye toward delivering a high-rise hotel at <a href="https://www.urban.com.au/projects/12-nexus-court-mulgrave">12 Nexus Court</a> which sits within the initial Nexus Corporate precinct.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image74_2.jpg" rel="gallery-all" title="Cedar Woods' latest alongside Gardenia Apartments progress during late August. Image: DKO Architecture"><img alt="" class="image-article-full-width-580px" height="205" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image74_2.jpg?itok=xH7zTD8G" title="Cedar Woods' latest alongside Gardenia Apartments progress during late August. Image: DKO Architecture" width="580"></a>

<figcaption>Cedar Woods' latest alongside Gardenia Apartments progress during late August. Image: DKO Architecture</figcaption></figure><p>Cedar Woods too is after more within their Jackson Green estate in Clayton South.</p>

<p>Midway between Westall and Huntingdale stations, the residential development has to date seen townhouse and small scale apartment stages built onsite. The gradual upswing in development size now sees the DKO Architecture-designed Gardenia Apartments under construction; it includes 74 dwellings over six levels.</p>

<p>Cedar Woods are now seeking approval for two additional residential buildings housing a combined 165 apartments. Also designed by DKO Architecture, the taller of the duo reaches 9 levels.</p>

<p>The intended apartment split for the project at planning which is sited over 1408-1418 Centre Road sees 20 single, 131 double and 12 triple bedroom apartments.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/img_6168.jpg" rel="gallery-all" title="A small section of the M-City site"><img alt="" class="image-article-full-width-580px" height="387" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/img_6168.jpg?itok=Ah9uT4MP" title="A small section of the M-City site" width="580"></a>

<figcaption>A small section of the M-City site</figcaption></figure><p>Whilst the above duo seek bigger development outcomes they are minuscule relative to the largest current development within the MNEC, which also happens to be the largest mixed-use development being delivered outside of Melbourne's CBD. Clayton's M-City is now at full construction with Multiplex overseeing works for the $1 billion project over a 35,000 square metre site.</p>

<p>Backed by Saraceno Group and Schiavello Group, M-City includes 643 apartments and serviced apartments, a 4.5 star Mantra hotel, up to 60 specialty retail spaces, 17,330 square metres of office space and 1,905 car parks supporting a projected population of about 4,000 residents, workers and shoppers.</p>
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Salta and Cedar Woods upsize their Monash intentions

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<p>City of Melbourne are processing a gaggle of towers that are at planning and looking to make their mark on the skyline in years to come.</p>

<p>Across Melbourne and West Melbourne the applications combined have the ability to add hundreds of apartments, plus a considerable lump of short stay accommodation. In fact four of the five towers include hotel accommodation, amounting to 1,000 plus additional rooms.</p>

<p>Each of the towers in planning is outlined below:</p>

<p><strong>539-545 Flinders Lane Melbourne </strong></p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image245_0.jpg" rel="gallery-all" title="Image: CBRE"><img alt="" class="image-article-full-width-580px" height="371" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image245_0.jpg?itok=sIVhqTIe" title="Image: CBRE" width="580"></a>

<figcaption>Image: CBRE</figcaption></figure><p>Hotel and serviced apartment accommodation is planned for a significant development site fronting Flinders Street.</p>

<p>Demolition is expected across 540 Flinders Street and 539-545 Flinders Lane for the delivery of two towers of 24 and 32 levels. 476 hotel rooms and 99 serviced apartments are expected across the 1,741 square metre site.</p>

<p>CBRE marketed the site during 2016.</p>

<p><strong>45-55 Dudley Street, West Melbourne</strong></p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image241.jpg" rel="gallery-all" title="Image: Savills"><img alt="" class="image-article-full-width-580px" height="372" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image241.jpg?itok=sFdRo5U7" title="Image: Savills" width="580"></a>

<figcaption>Image: Savills</figcaption></figure><p>United Asia Group is pushing for approval for the 1,304 square metre site after initially being rebuffed by City of Melbourne.</p>

<p>Having paid approximately $20 million for the Flagstaff City Inn, an application went before Council late last year for what is expected to be a 32 level tower with 189 apartments and 40 hotel rooms in tow. 45-55 Dudley Street is now noted as being at appeal after having failed its initial planning run.</p>

<p>Agent Savills sold the site last year, setting a new a new land record of approximately $15,000 per square metre for West Melbourne in the process.</p>

<p><strong>372-378 Little Bourke Street, Melbourne</strong></p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image242_2.jpg" rel="gallery-all" title="Image: Doig Architecture"><img alt="" class="image-article-full-width-580px" height="271" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image242_2.jpg?itok=KoQbzkqx" title="Image: Doig Architecture" width="580"></a>

<figcaption>Image: Doig Architecture</figcaption></figure><p>Berjaya Developments is believed to be behind a new office tower is planned to sit above the Hardware Lane precinct.</p>

<p>372-378 Little Bourke Street also spills onto Niagara Lane, with the current low-rise retail tenancies expected to be replaced by a predominantly commercial development spanning 18 levels. The slender yet long site will include retail tenancies along its ground level plane.</p>

<p>Doig Architecture have created the tower's design.</p>

<p><strong>475-485 Flinders Lane, Melbourne</strong></p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image246_1.jpg" rel="gallery-all" title="Image: Google"><img alt="" class="image-article-full-width-580px" height="402" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image246_1.jpg?itok=9x_HjVch" title="Image: Google" width="580"></a>

<figcaption>Image: Google</figcaption></figure><p>The Flinders Lane proposal went to planning earlier this year with the expectation of yielding 391 new hotel suites within a 27 level tower. Also fronting Highlander Lane, the application directly south of Rialto Towers would replace an existing 4 level commercial building.</p>

<p>Date of first documented occupation onsite spans back to 1839, and consequently the site holds heritage significance "for its potential to contain historical archaeological remains associated with the settlement and growth of early Melbourne. Under the terms of the Heritage Act 2017 there is protection for all historical archaeology sites and objects in the state."</p>

<p>The application includes basement levels.</p>

<p><strong>407-415 King Street, West Melbourne</strong></p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image244_1.jpg" rel="gallery-all" title="The rejected design. Image: Plus Architecture"><img alt="" class="image-article-full-width-580px" height="390" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image244_1.jpg?itok=3iIHkGK9" title="The rejected design. Image: Plus Architecture" width="580"></a>

<figcaption>The rejected design. Image: Plus Architecture</figcaption></figure><p>Developer DCF Property initially tried to <a href="https://www.urban.com.au/news/dcf-property-looks-to-capitalise-atop-flagstaff-hill">gain approval for an 81 metre tower</a> onsite during 2016. With that Plus Architecture-designed tower also rebuffed by City of Melbourne, a new and yet to be seen application was submitted late last year.</p>

<p>Much like the initial application, partial demolition is sought for the corner site which plays host to a two to three storey building which carries an individual Heritage Overlay.</p>

<p>Whereas the initial application included both hotel capacity and apartments, the current multi-storey application is dedicated to hotel use. It is expected that the most recent design would be significantly lower in height.</p>
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Five Melbourne towers at planning to watch out for

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<p>The sway toward commercial development within City of Yarra shows no signs of slowing, with Urban.com.au tracking near on 300,000 square metres in development.</p>

<p>The intensifying trend continues to attract developers which have historically leaned on residential development. Latest to the fray is H&amp;F Property who is the applicant behind an 11 storey building at Abbotsford's 218-228 Hoddle Street, with a secondary frontage to Stafford Street.</p>

<p>Designed by Architectus, the $25 million application contains 7,389 square metres of space above three basement levels, and was submitted during April.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image41_11.jpg" rel="gallery-all" title="Lower level Hoddle Street expression. Planning image: Architectus"><img alt="" class="image-article-full-width-580px" height="314" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image41_11.jpg?itok=IPDT6ejE" title="Lower level Hoddle Street expression. Planning image: Architectus" width="580"></a>

<figcaption>Lower level Hoddle Street expression. Planning image: Architectus</figcaption></figure><p>H&amp;F Property's bid is in addition to a bevvy of traditionally residential developers such as Caydon Property Group, Alpha14 Property Group, Pace Development Group, Beams Projects, GURNER, LK Property Group, Domain Hill Property Group and Peregrine Projects who are in the process of realising their respective first commercial developments, which all happen to fall within City of Yarra.</p>

<p>Add fellow development firms such as Lazzcorp, Alfasi Group, Salta Properties, Riverlee and Grocon who have a hand in active commercial developments within the municipality.</p>

<p>The result is an impressive 34 commercial projects on the go within City of Yarra according to Urban.com.au's Project Database.</p>

<p>Planning agency Human Habitats provides a decisive overview as to why City of Yarra, in particular, is running hot with commercial development:</p>

<blockquote>
<p>At a local level, ongoing change in the structure of employment has begun across the City of Yarra in recent years with strong growth in property, business services, retail, and the finance and insurance sectors. This demand for employment has been welcomed considering the decline in wholesale and manufacturing sectors across the City of Yarra.</p>

<p>As traditional office locations such as the CBD and Docklands reach capacity, employment precincts such as Richmond/Cremorne have become increasingly attractive locations for office based employment. This location appears to cater for the continuing growth in small to medium sized business services and the ‘new economy’ employment of an increasingly skilled workforce.</p>

<p>The demand for additional office space is reflected in the effective rental growth in the City Fringe Areas (which include Richmond / Cremorne) which has experienced growth in the order of 20% over the year to March 2018, and which has featured a vacancy rate of below 3.5% for in excess of 18 months.</p>

<p>Real Estate Advisory firm Colliers are predicting that the underlying fundamentals of demand within this area are sustainable, and that demand will remain strong given Melbourne’s promising economic outlook and extraordinary population growth.</p>
<cite>Human Habitats</cite>
</blockquote>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image44_7.jpg" rel="gallery-all" title="PACE Development Group's Langridge Street commercial foray"><img alt="" class="image-article-full-width-580px" height="569" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image44_7.jpg?itok=VRSJUG5n" title="PACE Development Group's Langridge Street commercial foray" width="580"></a>

<figcaption>Pace Development Group's Langridge Street commercial foray</figcaption></figure><p>PACE Development Group's expansion into the commercial market is via <a data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://maps.google.com/?q%3D51%2BLangridge%2BSt%26entry%3Dgmail%26source%3Dg&amp;source=gmail&amp;ust=1532663610265000&amp;usg=AFQjCNFOy_B4o69T_VVVRtKPmZb_AgP0VQ" href="https://maps.google.com/?q=51+Langridge+St&amp;entry=gmail&amp;source=g" target="_blank">51 Langridge St</a> in Collingwood, with the project's end value expected to surpass $25 million. </p>

<p>Planning and Design Manager at Pace Development Group, Michael Holah. touches upon what makes City of Yarra an attractive proposition. </p>

<blockquote>
<p>We see this striking a real chord with businesses wanting a contemporary upgrade, those priced out of suburbs such as Richmond and Cremorne, as well as those currently located in a co-working environment that have grown enough to warrant their own office space.</p>

<p>Unlike its CBD counterparts, this project is designed to capture the Collingwood feel and the ethos that the suburb stands for – SJB Architects has conceptualised something truly reflective of both the site’s surrounds and the cultures of the businesses that will grow here.</p>

<p>The smaller floor plates are exactly what the market is looking for.</p>
</blockquote>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image47_12.jpg" rel="gallery-all" title="The Hayball-designed 17-21 Harcourt Parade is due for a construction start"><img alt="" class="image-article-full-width-580px" height="363" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image47_12.jpg?itok=UfKVmlU-" title="The Hayball-designed 17-21 Harcourt Parade is due for a construction start" width="580"></a>

<figcaption>The Hayball-designed 17-21 Harcourt Parade is due for a construction start</figcaption></figure><p>With yet more projects to be added, the Urban.com.au Project Database tally sees 32 purely commercial projects and 2 mixed use developments listed within City of Yarra. These projects amount to some 292,100 square metres of commercial office space in development.</p>

<p>Only 7 developments are currently at construction and stand to add approximately 41,700 square metres of combined commercial stock, indicating that City of Yarra's commercial boom has some years yet to run.</p>
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