Richmond Healthcare Icon “The Pulse of Richmond” To Be Offered For Lease

19 June 2022

A substantial building suited to both Healthcare and Commercial Office is poised to be offered via lease in the coming weeks. CBRE’s Australian Healthcare & Social Infrastructure and Office Leasing teams, acting under instructions from Mark Wizel of Advise Transact, will offer 173 Lennox Street, Richmond with a total gross floor area of 2,265sqm*.

Developed as a purpose built facility for Epworth Healthcare in 1996 by its current owners, the standalone building for many years provided specialist consulting spaces which benefited greatly from its ability to , service the ever growing demand stemming from the neighbouring Epworth Richmond Hospital located less than 50 metres away. 

The sitting tenants lease is set to conclude this year providing an opportunity for the owners to look at the potential repositioning of the asset. The property which provides around 2,300SQM across four levels will be taking expressions of interest for new potential tenancies within the building with the view of modernising the building and taking advantage of the incredible supply / demand imbalance for genuinely defined suitable healthcare offering.

Senior Director at CBRE, Sandro Peluso said “While there is a very evident healthcare appeal, the location and highly flexible floor plates could lend itself well to a variety of end-user outcomes. An opportunity of this size and scale within the highly sought-after city fringe that also includes ample basement parking is incredibly rare. In addition to sitting within a major healthcare precinct encompassing Richmond and East Melbourne you are also moments from the dense retail of Bridge Road and technology office hub of Cremorne.”

CBRE’s Healthcare Property Associate Director Jimmy Tat explains “From a healthcare perspective, a major challenge for larger scale GPs, rehab or hospital operators is the ability to secure the services of doctors. Given the property’s proximity to the CBD and more importantly being close to Epworth Hospital and other surrounding amenity, a modern healthcare facility in this location should be a medical practice syndicate’s dream scenario.”

 173 Lennox Street is only 3kms from the Melbourne CBD. As an existing building, prospective tenants will be sure to take note of the national rise in constructions costs which is stifling many new leasing prospects and positioning refurbishment projects as the opportunities of choice from both a cost and delivery perspective.

On the office leasing front, CBRE’s Patrick Saccardo says, “Even though this building is within the heart of the Richmond Medical Precinct, we believe it would make an ideal space for a prospective office tenant. Providing a rare standalone building within close proximity to incredible amenity, recreation and food and beverage options, as well as nearby parkland and outdoor space plus easy accessibility to public transport in addition to basement car parking t, we expect to have increased interest in this property from office occupiers.”

CBRE’s Associate Director Josh Jennings added “As businesses strive to create a post covid workplace which encourages staff to come back to work, an emphasis on location, amenity and quality of accommodation has never been more important. We have seen a willingness for tenants to pay a premium in order to secure an office which will combat issues around staff attraction and retention which more than ever has become a critical factor. Examples of this are Australia Post committing to 480 Swan Street, Dentsu and Monash IVF committing to 510 Church Street and HUB Australia securing space at 459 Church Street. Rents within the precinct have seen a dramatic upwards shift in line with quality of developments, pushing rents well into and above $600 / sqm net.

173 Lennox Street is being offered for lease via a public expressions of interest campaign to be managed exclusively by CBRE.