Flexi-space provider signs long lease on Geelong CBD office

Co-working provider Workspace365 has taken a 14-year lease at 60 Moorabool St, Geelong.

Businesses are seeking smaller tenancies in Geelong as workers return to the office, particularly as they size up whether to commit to a bigger presence in the city, a commercial real estate agent says.

MP Burke Commercial principal Pat Burke said he noticed the trend as Australian co-working provider Workspace365 committed to a 14-year lease at 60 Moorabool St.

The firm will take up the entire fourth floor of the 9-level office tower, which is jointly owned by GMHBA and Quintessential Equity, occupying the A-grade office space from July.

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Mr Burke said businesses were wanting to test the water in Geelong.

“In our recent experience several companies are seeking smaller tenancies to get a foothold in the market, along with larger corporates seeking to test the market by establishing a flexible satellite office, without committing to a long-term lease with significant, upfront establishment costs,” Mr Burke said.

“Previously, A-grade offices were exclusive to larger CBDs, but now we are seeing cities like Geelong attract high profile corporate tenants looking to relocate and establish their businesses in closer proximity to where their staff reside such as coastal areas along the Bellarine Peninsula.”

Co-working provider Workspace365 has taken a 14-year lease at 60 Moorabool St, Geelong.

He said it made sense to look at regional cities in Geelong, when firms were still paying $1000 per square metre rents in Melbourne’s office towers.

The deal with Workspace365 takes leasing of the building to 65 per cent, joining GMHBA, Morris Finance and Employer Mutual Limited as tenants.

Workspace365 founder Michael Benson said companies and individuals were reassessing their office needs post-Covid.

“We are now seeing a resurgence for quality, flexible workspaces, where businesses can take advantage of cost-effective solutions that allow companies to scale up or down as required,” he said.

“Workspace365 has the ability to support individual desk requirements, private offices and enterprise suites supported by an extensive board room and meeting room offering, we have more meeting rooms per sqm than most other providers in this sector.

“Complementing 60 Moorabool Street’s existing premium fit out, Workspace365’s Geelong office will include 5-star end-of-trip facilities, multiple meeting and board rooms, breakout and collaboration spaces, a premium kitchen, and private offices from one to 20 people,” Mr Benson said.

Co-working provider Workspace365 has taken a 14-year lease at 60 Moorabool St, Geelong.

Colliers national director of office leasing Edward Knowles said modern, quality buildings would bring business back to the CBD.

“We are seeing a shift towards people working closer to where they live especially in regional areas such as Geelong and the Bellarine,” Mr Knowles said.

“Additionally, we continue to see a flight to quality around the country where tenants are gravitating towards newer buildings that improve workplace experience and ultimately attract people back to offices.”

Quintessential Equity chief executive Russell Bullen said 60 Moorabool St is in the heart of Geelong’s retail precinct and has views of Corio Bay.

“Designed by Cox Architecture, the state-of-the-art building provides businesses with a great working environment to attract and retain the best talent,” he said.