87 Queens Parade is just one of several developments designed to take advantage of the growing city-fringe office space phenomenon, which is seeing an increasing number of tenants look for quality office space in Melbourne’s outskirts to be closer to their clients, more diverse amenity options and public transport.

“Tenants are wanting excellent building technology and services, the latest in end-of-trip (EOT) facilities, and ease of accessibility,” Savills Australia’s Phil Cullity, who has been appointed to lease 87 Queens Parade with colleague Alissa Woods, said.

“Major corporates are now focusing on established inner-fringe locations for better work/life balance.

“The rental gap, which has traditionally been minimal, is now widening, as the costs to occupy city offices increase.

“Other influencing factors include improvements in IT and staff amenity, such as well-known cafes and bustling retail strips, in fringe locations.”

Ms Woods said Melbourne’s fringe office supply had continued to tighten as a result of increased demand from tenants and withdrawals for residential and other uses.

“Low supply in the CBD has been a significant driver of this trend, with tenants being pushed into the fringe market,” she said.

“The strong prelease demand is fueling uplift in expected rental growth.”

Learn more about Savills Office Leasing.