Colin DeLutis Melbourne based investor/developer DeGroup will embark on a new $70m office building in Melbourne’s CBD despite industry concerns over rising vacancy and a potential hit to post-COVID demand.

Founder and chairman, Colin DeLutis said DeGroup, currently the owner of several office buildings in the legal precinct, was more than confident that the new building, due for completion in 2022, would find a ready leasing market.

The Boutique office to rise 75m above historic legal precinct hotel.

“With nothing new and modern having been built in the legal precinct for over 20 years, we are quite bullish about the market and very confident about the building’s leasing potential.”

 “Businesses, and their clients, want COVID safe, hygienic spaces, where they can control their environment, and an important part of that is about not having to share spaces with other businesses.”

“This is the new normal and will set new space apart from the competition in what will ultimately become a very competitive market as the economy emerges from the downturn and drives white collar employment growth,’’ Mr DeLutis said.

He said “there was no doubt the market had changed in recent times and boutique space had been part of that while COVID had and would continue to also have an impact on tenants’ space requirements and these had been reflected in the design of the COVID-safe floor plates.”

Located at 263 William Street on the corner of Little Lonsdale Street, and in the heart of the legal precinct, the project will rise 75 metres above the iconic Metropolitan Hotel which will be retained with a suite of restoration works and improvements.

The 20 storey, 7013sqm GLA building, will include 3799 square metres of office space over 17 levels and feature an 822sqm multi-level restaurant and bar, including a double-height rooftop bar overlooking William Street. The building will also contain significant areas of common space including high quality end-of-trip facilities.

Mr DeLutis said spending announced in the State Government’s budget provided a new level of confidence for the property development sector including a number of measures which would prima facie drive an earlier economic recovery.

“We are confident we have the right building for the times and are buoyed by a budget which seeks to deliver a quick economic turnaround in Australia’s most livable city,’’ Mr  DeLutis said.    

The self-contained 233sqm office floors will feature kitchenettes, shower facilities, 24-7 secure access, natural light from all sides and panoramic views of Flagstaff Gardens, the surrounding CBD and beyond.

Mr DeLutis said “the building, which drew design inspiration from the timeless 140 William Street building, was expected to attract interest from a range of occupiers including legal firms, mediation facilities, barristers’ chambers and technology companies.”

The formal leasing campaign is expected to commence early next year with a focus on securing whole or multiple level tenants.

Crema Constructions have been appointed as builders of the WMK Architecture designed building.

Completed in 1854 the Metropolitan Hotel was first run by early settler and hotel proprietor, John M Chisholm.