A newly completed, fully leased South Yarra landmark combining the restored 1887 South Yarra Coffee Palace with a contemporary tower designed by global architecture firm Skidmore, Owings & Merrill has been brought to market.
Located at 189 Toorak Road, South Yarra, the 11-level mixed-use property comprises 5,565 sqm* of net lettable area across premium workspace, coworking, wellness and hospitality uses, on a prominent 905 sqm corner site at Toorak Road and Claremont Street.
Completed in 2025, the development retains the Victorian façade of the former South Yarra Coffee Palace, later known as Hotel Claremont, with SOM designing the sculptural contemporary addition above. The global architecture and engineering practice is behind projects including Burj Khalifa, One World Trade Center and Willis Tower.
The building is anchored by premium health club and coworking operator The Commons, which occupies 3,908 sqm*.It incorporates a full-service health club with fitness, boutique studios, bathhouse and recovery facilities in the heritage podium and coworking and flexible office accommodation above.
The tenant mix also includes SOM Asia Pacific HQ, Fancourt Capital Group and V-Leader Group, while Melbourne hospitality owners behind the renowned restaurant Gilson is opening its third restaurant at the property following the success of its established Domain Road venue and newly opened Frog Club Chapel Street.
For sale through Oliver Hay, Leon Ma and Daniel Wolman of Cushman & Wakefield, the property benefits from an indicative WALE of 8.25 years*, supported by long-term leases and fixed annual rent increases. As a brand-new building, the property also offers the benefit of full depreciation allowances.
Cushman & Wakefield International Director and Head of Investment Sales Australia Oliver Hay said the building represented a rare opportunity to acquire a newly completed asset of scale in South Yarra.
“189 Toorak Road is difficult to replicate. It combines a prominent Toorak Road corner, significant heritage character and globally recognised architecture with a long-dated income profile and a highly complementary mix of occupiers.
“The quality of the building and its tenancy profile should appeal to a broad cross-section of domestic and offshore capital, particularly investors seeking modern Melbourne assets with secure income and genuine scarcity.”
Cushman & Wakefield Director and Head of Asia Capital Services Australia Leon Ma said the property reflected the evolution of premium commercial buildings beyond traditional office accommodation.
“The mix of workspace, wellness, hospitality and flexible office is a defining feature of the asset. The Commons has created an integrated workplace and health offering that generates activity well beyond conventional office hours.
“Combined with Gilson at ground level and a collection of established office occupiers above, it gives the building a genuine all-day character that is particularly well suited to South Yarra.”
The property is positioned in the heart of South Yarra, one of Melbourne’s most established and affluent inner-city precincts, surrounded by some of the city’s most prestigious residential neighbourhoods and a high-spending local catchment.
Its location at the intersection of the Toorak Road and Chapel Street precincts places the asset within one of Melbourne’s most concentrated lifestyle and hospitality destinations, supported by premium retail, dining, wellness and entertainment amenity. The surrounding demographic profile and depth of local amenity continue to underpin South Yarra’s appeal as a destination for premium businesses, hospitality operators and their customers.
The property sits approximately 110 metres from South Yarra Station and 100 metres from the nearest tram stop, with Chapel Street, Toorak Road’s retail and hospitality strip and surrounding parks and amenity within walking distance.
189 Toorak Road is for sale via International Expressions of Interest, closing Thursday, 12 November 2026 at 12pm AEDT
