Chadstone Tower One reaches capacity nine months ahead of schedule

The final floor in Chadstone Shopping Centre's $85 million Tower One development in Victoria has been leased to Cotton On Group.

Cotton On Group has signed up for 1,700sqm on level six in the 11-level, 16,000sqm building.

Rob Joyes from Colliers International said Tower One has been an outstanding success in terms of the rapid take-up of space, reaching 100 percent committed occupancy within three months of practical completion.

“Net rents achieved have ranged from $350 per sqm net to $365 per sqm net,” he said.

"The tenant mix was largely characterised by the property and retail sectors, including Colliers International's south-east office and the tower owners themselves, Gandel Group and Vicinity Centres.

“The Body Shop, Shaver Shop, Ricegrowers (SunRice) and Cotton On have gravitated toward the benefits of being closely located to their retail operations within Chadstone Shopping Centre,” he said.

Anneke Thompson, Colliers International’s national director for research, said strong demand in the inner-eastern suburbs had fuelled record effective rental growth.

“In the year to March 2017, effective rents have increased by 9.1 percent, the strongest increase we have seen since our data series began,” she said.

“Given the low supply levels in the immediate outlook, further increases are forecast and we expect to see an increase in effective rents of 9.0 percent during the next 12 months.”