PODCAST: Why private capital is feasting on Melbourne real estate

JLL’s head of tenant representation in Victoria, Jessica Van Raay, described on the podcast a growing confidence around Victorian employees returning to the office and the value corporate real estate decision-makers are putting on being in vibrant precincts – factors that will further influence the return of major capital.

“They’re conscious of who is in the building and what the vibe is and as a result we’ve seen a strong recovery in the east end of Melbourne. Tenants want to go there now but there are not a lot of options in that part of the city,” Van Raay said.

Podcast guest Nick Drake, JLL’s joint head of leasing in Victoria, said rental growth over the past five years is helping landlords stack up the facilities tenants expect from buildings, including business lounges, town hall space and high-quality end-of-trip facilities.

“If you look at the number of available prime office sites in the core CBD you can probably count them on one hand. The market will only tighten further and we’re going to start seeing greater rental growth,” he said.

Click here to hear more from Drake, Van Raay and Dedricks in the full podcast episode.