NAB’s hunt for Melbourne HQ to shake up leasing market
National Australia Bank is set to shake up another city leasing market with its Melbourne office requirement prompting developers and landlords to pursue it to anchor new and existing towers as it weighs up moving from its Bourke St building in the central business district.
The bank, advised by Pepper, is issuing a much awaited brief, which could see it move from its headquarters at 500 Bourke St and two suburban locations, with up to 60,000sqm of space required in total.
Such a large requirement will likely spark a new tower or fill up an existing building that tenants are leaving.
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The bank has already fielded approaches from Canadian heavyweight Brookfield Property Partners, pitching its proposed tower at 405 Bourke St. That development-ready project will span a net 62,500sqm of office space across 28 levels, with floorplates topping 2150sqm, well suited to a bank’s requirements.
The Commonwealth Bank has also shifted from nearby 385 Bourke St to premises at 357 Collins St and the Docklands, making the location more viable for the NAB.
However, rival developers, including Mirvac Group and Cbus Property may also seek to provide options for the bank.
GPT may also chase the NAB requirement as it looks to backfill space in the CBW twin towers in the CBD, as some tenants have agreed to leave the complex.
NAB may seek to relocate from its Melbourne headquarters at 500 Bourke St.
The bank may ultimately elect to stay put in its Bourke St headquarters and again upgrade its offices. In 2008 the bank renewed on a fresh 12-year lease with building owner, super fund backed group ISPT, undertaking a refurbishment of the 47,000sqm headquarters.
Notably, the bank has occupied the entire 37-storey building, accommodating more than 3000 people, for more than 30 years.
NAB’s requirements for a new Sydney headquarters have already shaken up that city’s market. The bank is believed to be headed to the $1.7 billion office and retail development at Wynyard Place being developed by Brookfield.
The project’s centrepiece will be a 27-level state-of-the-art office tower at 10 Carrington St, with the bank targeting the low rise floors and space in an overhauled Shell House. The deal, on which the parties have refused to comment, would spark the development and allow it to be completed in 2020.
The bank is also selling two East Melbourne properties for about $60 million to an offshore developer in a JLL brokered deal, and has been reported as seeking 15,000sqm of space in the interim.
“We continually review our property and workplace requirements to ensure we provide the best environments for our customers and people. No decisions have been made,” a NAB spokesman says.
This article originally appeared on www.theaustralian.com.au/property.
