Leading Australian design and construction company Qanstruct is moving to sell and leaseback its landmark national headquarters in Hawthorn amid strengthening demand for suburban office investment opportunities.
CBRE’s Melbourne Middle Markets team of Mark Wizel, Josh Rutman, Lewis Tong and Scott Orchard has been appointed to sell the inner suburban office building – a former church, which has served as Qanstruct’s headquarters for the past 15 years.
Qanstruct’s Mark Ruff described the redevelopment of the 500 Burwood Road Street as one of the company’s best business decisions by creating a showpiece for Qanstruct’s capabilities.
“While we’re known for our work designing and constructing industrial buildings, we bring clients here to showcase our talent for architectural design and to demonstrate how we integrated a leading-edge office fitout into a unique asset, with minimal change to the building’s fabric,” Mr Ruff said.
“While the decision to sell was extremely difficult, we have committed to an eight-year leaseback with two, four year options, which ensures our long-term occupancy.”
The building is located near several major schools in Hawthorn’s emerging innovation hub, including Xavier College and Melbourne Ladies College, and is directly opposite the acclaimed Swinburne University. It is also directly accessible from Glenferrie Train Station and various tram routes.
Situated in the heart of Hawthorn’s popular retail and commercial precinct, the 1,975sqm* property was originally built in 1881 as a Sunday School for the Congregational Church, before being repositioned and fully refurbished into a cutting-edge office space for Qanstruct.
CBRE’s Scott Orchard said the sale campaign coincided with an historic low office vacancy rate in the Boroondara office market, and limited supply of new office space in the suburbs of Hawthorn and Camberwell.
“There has been a surge in tenant demand for space in Melbourne’s inner suburbs, particularly from businesses whose directors and staff live in the surrounding area,” Mr Orchard said.
“With virtually zero construction of new office accommodation in the precinct, there will continue to be demand for buildings like 500 Burwood Road. Similarly, the blue-chip nature of the area, affluent demographic and appeal to occupiers has supported strong investor demand for office investment opportunities.”
CBRE’s Josh Rutman said the decision to sell followed the auction of 1 Oxley Road, Hawthorn, which had exceeded all market expectations, and the sale of a range of suburban office assets – all at historic low yields.