Poly Australia has finalised an Agreement For Lease (AFL) with one of Australia’s most iconic retail institutions, Myer, with 1000 La Trobe Street, Docklands, to become the future location for Myer’s Store Support Office (SSO). Positioned as one of Melbourne’s most connected destinations, 1000 La Trobe is just a six-minute walk from Southern Cross Station, the free tram zone, Capital City Trail, as well as major freeway arterials. 

Myer have entered into an AFL for a minimum occupancy of 11,000m2 across five levels of the highly coveted A-Grade office tower in the Digital Harbour Precinct.

Poly Australia and Myer are working collaboratively to achieve a people centric floorplan across levels six to ten

With the arrival of John King as CEO, Myer in June 2018 the approach though his Customer First Plan has been to reduce space, improve stores and add new and exclusive brands.

 “The decision to move our SSO is in line with our Customer First Plan to ensure we are operating in the most efficient and productive way, and that we have an office environment that allows us to support our store team members in the best possible way.” said King.

“This is a great outcome for Myer shareholders with improved commercial terms and a more appropriately sized head office. It is also a great outcome for our team members with a Support Office that has leading technology, is energy efficient, and provides a modern office environment in which to work.” he said. 

The development will consist of highly efficient floor plates averaging 2,200m2 allowing flexibility for tenants

Poly Australia and Myer are working collaboratively to achieve a people centric floorplan across levels six to ten with an emphasis on open plan working, break out areas, support spaces and vertical floor integrations. Myer will continue to occupy its current Store Support Office, which is now located at 800 Collins Street, Docklands, until the project is delivered in Q4 2021. 

 Poly Victoria Executive Director, Steve Wang said: “We are thrilled to welcome one of Australia’s most well-known and loved brands, Myer, to 1000 La Trobe. It’s a pleasure to be able to host such an iconic Australian retailer in our flagship commercial development for Victoria.”

Designed by architects Woods Bagot, 1000 La Trobe will be the first major tower in the Digital Harbour Precinct. The development will consist of highly efficient floor plates averaging 2,200m2 allowing ample flexibility for tenants.

The development is targeting a PCA A Grade, 5 Star Green Star and 5 Star NABERS Energy rating

“Myer’s mindful floorplan design is a tribute to the flexibility of 1000 La Trobe, which is a priority offering to our prospective tenants. With the constantly evolving workspace trends and differentiating tenant needs we understand the importance of shaping these spaces in a way that will ensure our tenants experience continued satisfaction throughout their leasing term.” said Wang.

The design hosts the opportunity for vertical floor integrations, a 780m2 third space with business lounges on the second floor, public flexible work spaces on the ground floor, top floor terraces and a proposed childcare centre. It also includes a substantial ground floor retail mix consisting of cafés, retail services and other amenities.

Probuild commenced main construction in Q3 2019 and with the recent completion of construction of the core the project remains on schedule to be completed in Q4 2021. The development is targeting a PCA A Grade, 5 Star Green Star and 5 Star NABERS Energy rating. 

The design hosts the opportunity for vertical floor integrations

Poly (Australia) Developments and Holdings is the Australian division of the listed international property development company, Poly Developments and Holdings. The company entered the Australian market in January 2015 with acquisitions in Melbourne and Sydney. Key current projects include the 27 storey commercial tower at 210 George Street in Sydney and the 24 storey commercial tower at 1000 La Trobe Street in Docklands Victoria.

Melbourne’s prime office yields will compress further in 2020 buoyed by continued buyer demand and limited investment opportunities. This is one of the key Melbourne take-outs from CBRE’s new 2020 Market Outlook report.

CBRE Senior Director, Capital Markets, Kiran Pillai said Melbourne’s average prime office yields were expected to decline by some 25bps this year to a new low of around 4.50%.

“Strong investor demand, combined with declining bond rates, should drive further yield compression over 2020. Melbourne’s office market is expected to remain tightly held, which will drive further convergence in prime and secondary yields as investors demonstrate a preparedness to absorb more risk in order to get access to Melbourne office stock,” Pillai said.

The continued tightening in the market will coincide with the largest boost to new office supply in Melbourne in over 25 years, with eight new office buildings totaling 338,000m2 (representing approximately 7.3% of the total size of Melbourne’s CBD) due to reach completion in late 2020. This will lead to a in rent growth as a result of increased vacancy, which will see incentives increase over the short term.

However, Pillai noted that Melbourne’s long-term rent prospects remained strong, which would continue to underpin interest in office investment opportunities, with the city’s yields still considered attractive when compared to other major global markets.