Melbourne's booming education sector continues to drive demand for city offices, with a string of recent deals tying up nearly 6000 square metres of space.
Acknowledge Education, which runs four colleges – Affectors Academy, Front Cooking School, Melbourne Language and Stott's Colleges, has signed a major 3772 square metre lease at 168 Exhibition Street.
The colleges will take levels one to six in the building, recently upgraded and refurbished by its private owner, in a deal negotiated by CBRE's Patrick Mount and Mark Bolis.
Mr Mount said Acknowledge signed a five-year lease that tied up the building's signage rights.
Significant growth in Australia's education sector – now a $19 billion industry – has underpinned demand for space, particularly from groups catering to international students.
"Any buildings with a current 9B permit, which allows for education uses, are hot property, underpinned by estimates that Australia's international student population will grow from 450,000 to 1 million by 2025," he said.
The deal follows Australian Professional Education and Macquarie Language Links each committing to 538 square metres at 341 Queen Street.
Both providers signed up for five-year terms on rentals of about $460 per square metre with minimal incentives.
Vocational education and training college Chisholm Institute has also expanded, taking a three-year lease over a whole floor at 399 Lonsdale Street.
The college leased 890 square metres of space on level one, which it will use for hair, beauty and make-up courses, Savills Australia's office leasing director Phillip Cullity, who brokered the deal with Mat Kent, said.
The rent was not disclosed but market sources suggest it was about $450 per square metre gross.
Mr Cullity said Chisholm was one of city's largest colleges with seven locations across Melbourne's south-east.
Other education providers, APIC College, Australian Technical and Management College, Education Centre of Australia and Southern Cross University, are in the same building.
Another vocational training institute, Harward International College, has taken 278 square metres at 213- 215 Lonsdale Street, said JLL's senior leasing executive Zak Seccull.
