Cbus Property lures Collins Street tenants to Docklands tower

Super fund developer Cbus Property has taken occupancy at its 720 Bourke Street Docklands office tower to 87 per cent after securing two big name tenants, both of whom have quit Collins Street.

Chubb Insurance, a division of US insurance giant Chubb Group, will take 1578 square metres on level 12, relocating from 330 Collins Street and the Commonwealth’s Civil Aviation Safety Authority will take 1338 sq m on level 13, relocating from 35 Collins Street.

Both deals were struck on seven-year lease terms with net rents ranging from the very high $400s to early $500s per square metre with an incentive of about 30 per cent.

The $440 million tower, with 46,500 sq ms of A-grade office space, was completed last year with Medibank occupying nine of the 16 office floors. The new leasing deals mean just one full floor remains available for lease.

Colliers International’s Ben Christie negotiated the new leases on behalf of Cbus Property. Chubb Insurance was represented by Genna McCarthy from CBRE’s Global Corporate Services and CASA was represented by Kevin Courtney from Colliers International’s Corporate Solutions team.

Mr Christie said the new deals were great results for Docklands, as they were 10 to 20 per cent higher than other rentals being achieved in the precinct. He put this down to the quality of the building, which includes 2850-square-metre floorplates, an abundance of natural light and high-sustainability features.

In another Melbourne office leasing deal, design firm Arcadis has taken a 1262-sq m whole floor at 140 William Street, the 41-level office tower owned by REST Industry Super. The five-year lease was negotiated by Colliers International’s Shane Burns.