Perron Group scores Vic leasing deals

Perth-based Perron Group has secured five new leases for its office tower on Melbourne's St Kilda Road, despite vacancy rates in the area rising above expected levels.

The deals, which total 6,500 square metres, include leases with Ivanhoe Mines, Abigroup Contractors and Glencore Grain.

National development group Australand has also taken up one and a half floors in the building, and major tenant Symbion Health leased additional space.

CB Richard Ellis director Grant Tinker was the joint leasing agent for the property, and said all rents had been agreed to at rates in excess of $270/sqm.

He said the leasing deals highlighted continued demand for quality office accommodation in Melbourne, with its CBD holding the lowest vacancy rate of all major Australian cities.

But St Kilda Road vacancy statistics indicate 12.9 per cent of offices are empty, up from 10.5 per cent in June 2010.

"In spite of the vacancy going up, 484 St Kilda Rd has gone against the trend because the owners have invested money in the building to ensure it presents extremely well and offers the highest level of services," Mr Tinker said.