Riverview House – “Corner’s Kicking”

Food hub, tower project takes off…

The new look intersection of Elizabeth and Flinders streets is beginning to take shape with a rush of leases to food outlets just signed off for the corner’s Riverview House.

Part of the building, owned by Sydney-based developer Fivex, will become a construction site as the erection of a $40 million, five-storey tower begins.

Once finished, the office building will have the rare honour of having been built without tenants signing preleases – generally a prerequisite for obtaining bank finance for a new development.

Suggestions are already  being made that Swanston retailers may seek to locate in numbers after the Elizabeth St corner undergoes a council planned makeover.

In the meantime, the existing structure at 276 Flinders St will have a number of new tenants in time for the launch this month of a food and beverage precinct on the busy CBD corner.

Agency Cushman & Wakefield said the planned revitalisation of the corner, to be finalised after the Fivex project is built, had attracted a number of ground-floor food outlets, including Cafe 358 for 26sq m, Wok to Walk for 82sq m, King T for 14sq m and 24-Hour Ramen, which will take up 128sq m.  “The latest wave of food and beverage retailers setting up on Elizabeth St join major fast food chain Hungry Jacks and Greek takeaway outlet Hella Good, which is owned by the iconic 24-hour CBD restaurant Stalactites,” Cushman & Wakefiled retail leasing director Michael Di Carlo said.

“This is reflective of the major revitalisation that is occurring in the new precinct and spurred by Fivex’s ongoing office development.”

Fivex general manager Lesli Berger said the developer was thrilled with positive results achieved through the “repositioning of the retail offerings in stage one” of the project to makeover 276 Flinders St.

“We now look forward to commencing stage two of our program to construct our second tower on the existing site”, Mr Berger said.

“The strong Melbourne commercial leasing market gives us confidence the product we are delivering will be well-received, as one of the first office buildings constructed without pre-commitment.”

A Melbourne City Council spokesperson said traffic through the Elizabeth and Flinders streets intersection would be “permanently closed once the Fivex construction has been completed in 2019 and work begins on the permanent $2.2 million streetscape upgrade”.  The pedestrian-only precinct will  even have it’s own park.

And Mr Di Carlo said even more food retailers would consider the shift from Swanston St when the $11 billion Metro Tunnel is finished.

“(This project) is expected to add more foot traffic to the average 60,000 pedestrians that already travel through Elizabeth St daily,” he said.

“Elizabeth St has some of the highest rents in the CBD, yet this hasn’t deterred retailser from setting up shop, as demand for limited stock remains strong.

“This may be because the CBD is becoming more vibrant and accessible as employment environments continue to improve and the demand for goods and services increases.

“Strong business conditions continue to generate employment growth in the CBD.”

Mr Di Carlo added this had resulted in the office vacancy rate dropping to 4.6 per cent, the lowest in 10 years.

Herald Sun

4th July, 2018