Vicland secures permit for Toorak office tower – The Australian Financial Review

"We're very confident about the local office market," he said, pointing to Vicland's leasing success at 11 Wilson Street in South Yarra.

The 5500sq m office project across nine levels, which is due for completion in July, is 75 to 85 per cent leased.

In August, Mr McNee told The Australian Financial Review the development would appeal to Toorak's wealthy residents seeking to escape the commute to offices in the city.

"Most family offices are based in the CBD, even though the owners live in Toorak," he said.

"We'll be looking to appeal to these people as office tenants, allowing them to relocate closer to home."

A smaller format Coles Local supermarket will anchor the retail portion of the development, with Vicland considering a Spanish-influenced food hall concept on the upper retail level.

The inner suburbs of Melbourne, including Toorak, South Yarra, Cremorne, Richmond and Collingwood, have become hubs for commercial development amid record low office vacancies in the CBD and the recent downturn in the residential market.

At 627 Chapel Street, another Melbourne developer, Goldfields, secured non-bank finance for a $300 million speculativeoffice tower in November last year. Just down the road at the Jam Factory complex, owner Newmark Capital is progressing plans for a mixed-use project, including multiple office towers.

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Vicland secures permit for Toorak office tower - The Australian Financial Review