MORE AND MORE BUSINESS SWITCH TO MELBOURNE

COLLINS Tower is almost sold out following a flurry of purchases in the first half of 2016, the most recent being cosmetics brand MOR.

The international brand has snapped up some of the final available floors at the new Collins Tower at 580 Collins Street in one of the largest strata office sales in the Melbourne CBD this year.

Just one floor is remaining in the tower, which Colliers International says is proving to be a gateway to Victoria Harbour, where major brands like NAB, Myer and ANZ have relocated to from Sydney headquarters over the past 24 months.

MOR is hoping to establish a strong brand presence in Melbourne, a city already home to cosmetics compatriots MECCA Brands, Adore Beauty, Aesop and Grown Alchemist.

"MOR will join a mix of occupiers ranging from strategic business consultants, accountants and financial advisors at Collins Tower, where impressive sales results have reached as high as $8,600/sqm for brand new Collins Street offices," says Chris Ling of Colliers International's Melbourne City Sales team, who helped broker the deal.

"This acquisition is another example of tenants taking advantage of the recent interest rate cut to enter the strata market."

MOR was recently purchased by a China-based group, who view Melbourne as a 'safe haven', says David Sia who brokered the deal alongside Ling and Oliver Hay at Colliers International.

Hay says there are very few whole floor strata offices available in Melbourne CBD.

"We have seen many commercial buildings and sites developed into high rise residential apartment buildings, which further reduces the availability of prime CBD office space," says Hay.

"This has had a positive impact on the value of prime strata buildings and the associated net rent that is being achieved. As a result, tenants are entering the market whilst landlords and owner occupiers continue to capitalise on unparalleled conditions.

"In terms of upcoming supply of office space in the Melbourne CBD, a significant amount of commercial space is due to hit the market in 2016, including about 9,700sqm in the Rialto redevelopment and around 54,000sqm at 447 Collins Street which is due to commence construction in the next 12 months. This is expected to ease but not eliminate some of the undersupply in the CBD."

Another large-scale development is going ahead at 889 Collins Street, which is expected to drive a further uplift in service, retail and commercial amenity for the growing precinct.

Read Business News Australia's feature on Adore Beauty, the Melbourne-based online beauty store which has just entered China and Deciem, 'the abnormal' Canadian beauty company soon to set up shop on Chapel Street.