13 October 2025
Developer Fortis has topped out its $50m office project at 122 Moray Street in South Melbourne, marking the structural completion of its latest commercial building and confirming it as the future home of the Pallas Group’s Melbourne headquarters.
Designed by Fender Katsalidis and built by Jardon Construction, the seven level building offers 3,627 sq m of office space and 274 sq m of ground-floor retail space, with completion due in the second quarter of 2026.
Pallas Group – which includes Fortis and finance arm Pallas Capital – has pre-committed to about 40% of the space.
Sarah Vaughan, Fortis’ general manager of development in Victoria, said the project responded to an occupier base reshaped by hybrid work.
“The shift to hybrid working has reshaped how people live and work, and we’ve been strong advocates for city-fringe locations in the post-Covid climate,” she told Green Street News. “Demand for premium assets in these areas has often outperformed CBD properties.”
She said Fortis had drawn on experience from three earlier South Melbourne projects to design what it calls its most advanced commercial asset yet, with flexible floorplates, private terraces, a communal rooftop, end-of-trip facilities and a tenant sauna. A retail operator will be announced closer to completion.
“It’s not simply about buildings that look great, but buildings designed with the occupant experience in mind: how people work, collaborate, and socialise,” Vaughan said.
The project arrives amid a wider recalibration of Melbourne’s office market. While the CBD continues to wrestle with vacancy and sublease space, Vaughan said demand in precincts such as South Melbourne, Cremorne and Richmond have fared better.
“The commercial sector in select fringe locations has remained relatively resilient. With the right construction partner … strong funding support … and a compelling offering, we’ve been able to navigate these headwinds effectively,” she said.
