Cedar Woods' first strata office building within Williams Landing, comprising 47 strata office suites and a ground floor medical centre has sold out in just under seven months.
Located at 111 Overton Road within the Wlliams Landing town centre, construction on the 5-storey building is due to commence shortly with completion expected in March 2019.
According to 2016 Census data from the Australian Bureau of Statistics, Wyndham remains one of the fastest growing municipalities in Australia, with 55,500 people moving to the area since 2011, a growth of 34.4 per cent.
This population growth is also seeing more businesses invest in the west, and in turn Williams Landing. According to a report prepared by economists MacroPlan Dimasi, on completion the Williams Landing town centre has the potential support in excess of 21,000 jobs, the majority of which will be white-collar roles.
To further support this demand, Cedar Woods is currently in the planning stage of its next strata office building, 101 Overton Road, which will offer premium commercial suites in the heart of the Williams Landing town centre.
Urban Melbourne asked Cedar Woods Chief Operating Officer Patrick Archer what he credited the sell out success to and how the project fits into the overall vision for Williams Landing.
Urban Melbourne: What do you attribute the sell-out success of 111 Overton Road to?
Patrick Archer: Williams Landing is located at the gateway between Melbourne and one of Australia’s fastest growing communities with 34 per cent population growth over the past five years. This strong growth is creating opportunities for businesses to grow and expand in the area.
Furthermore, Williams Landing provides an ideal location for businesses with numerous amenities within walking distance such as the Williams Landing Train Station and Williams Landing Shopping Centre.
The success of 111 Overton Road can also be attributed to the attractive price points, with an average sale rate of $5,000/sqm, in comparison to strata offices in the CBD commanding in excess of $10,000psm.
UM: A second strata office at 101 Overton Road is already on the cards. Do you envisage any future commercial development which would be lettable to larger tenants?
PA: 101 Overton Road will bring a further 6,000 sqm of high-quality strata office space to the west. With areas ranging from 50-160 sqm, we hope to launch this project in the next couple of months.
We currently have another office development, 95 Overton Road, in town planning which will comprise a further 9,000 sqm building over 10 levels. We are actively looking to pre-lease this space. The recent relocation of Target Headquarters from Geelong and Williams Landing has also boosted interest in the Williams Landing Town Centre.
UM: How do these projects fit into Cedar Woods' overall vision for Williams landing?
PA: We envisage the Williams Landing Town Centre as a dynamic commercial and retail hub in Melbourne’s western region. We see the suburb acting as a major centre for business and retail, as well as providing contemporary public spaces for leisure and recreation.
The two strata office projects are keeping in line with this vision, as the convenient location of Williams Landing gives proximity and linkage to a safe, convenient and fully integrated transport network for pedestrians, cyclists, motorists and public transport users.
The two office buildings also tie into the already established Williams Landing Shopping Centre and the new Target headquarters to be completed by the end of 2018.
UM: Do the two Overton Road projects reflect a change in the market, in terms of moving focus away from residential development to commercial?
PA: We believe that both the residential and commercial markets are undersupplied. We continue to see strong demand for both types of product, with 111 Overton Road selling out in just seven months.
The buyer profile of 111 Overton Road comprises local investors and owner-occupiers, with various white-collar small businesses securing the suites at 111 Overton Road. Some of these businesses include accountancy firms, financial planners, IT companies, law firms and architectural practices.
This evolution of a demographic who live and want to work within the west is the basis for ongoing high-quality commercial development at Williams Landing.
UM: And building on this do you believe 2018 will be the year for commercial development in Melbourne?
PA: We are seeing a clear trend of tenants making the decision to move to a suburban office. This is driven by a lack of supply and rising rental values in the Melbourne CBD along with many businesses looking to decentralize.