The once-industrial suburb of Cremorne has continued to attract major technology firms and edgy start-ups, as well as attracting the eye of more corporate companies. As they hunt for creative locations outside of Melbourne’s CBD, solidifying its unofficial title as Australia's Silicon Valley.
Cremorne's former warehouses have become commercial offices for the likes of Tesla, Uber, the Walt Disney Company, Carsales.com.au, REA Group and Seek. As these companies further establish the area’s reputation as Melbourne’s creative tech-hub and as Melbourne’s own Silicon Valley hub. This has lead technology, digital and creative, start-up tenants continuing to flock to the city-fringe precinct.
The demand has been so strong in Cremorne that the growth is outpacing South Yarra and South Melbourne, which have previously been the city’s top choices, and is set to continue with expectations of 3,000 more jobs to be created in the hub every year for the next 15 years.
There is also an increased focus in attracting and retaining the best talent within companies which has resulted in companies being willing to pay higher rents for a location that appeals to employees. This demand has seen the vacancy rate plummet below 1 per cent and office rents soaring to more than $600 per square metre.
According to CBRE’s latest Viewpoint, ‘The Evolution of Richmond and Cremorne’, occupiers are being drawn to the area’s proximity to the CBD, characteristic buildings, strong cultural opportunities available and access to key amenity that ultimately appeals to top industry talent.’
The report stated rents in Cremorne and Richmond are expected to continue outperforming their city-fringe counterparts, as more companies take occupancy in the near term.
This increase will be caused by technology companies and co-working firms as they are less likely to identify with the polished corporate culture associated with the Melbourne CBD.
A significant increase in demand for co-working space has also come about due to the covid pandemic, as employees want the flexibility to work from home but still crave the interaction and community that comes from an office space. More companies are choosing flexible working spaces, with Silicon Cremorne now home to several co-working spaces. Also attracting the eye of more corporate companies that look to take a break from their long-term lease and embracing a hybrid work model.
If you are looking at changing your working environment, consider space in Cremorne why not book a tour of collective_100’s premium office spaces and see first hand why we have become home to many prestigious national and multinational brands and learn more about flexible co-working and how it can benefit you!
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