Office space could double in South Melbourne

June 18, 2018 by  

The city fringe real estate market of South Melbourne may soon see a renaissance in office building construction if several new development proposals are successful.

Developers are turning their attention towards inner city office space as interest in apartment construction wanes across Melbourne. Areas north of the Yarra, such as Cremorne and Collingwood have already seen recent success transforming into workspace hubs, and South Melbourne looks likely to follow suit. A local expansion in office spaces could also mean extra demand for corporate gifts such as promotional pens.

Current figures show there are around 50,000 square metres of office space in South Melbourne. When developments come online, that will be increased by around 70,000 square metres. The extra space is mostly expected to be taken up by advertising agencies, many of which are already housed in St Kilda Road on the northern edge of South Melbourne.

Notably, several major developers have said they will move forward with construction without having firm commitments from prospective tenants, believing the area is undervalued. Colliers agent Travis Myerscough said:

“South Melbourne used to be expensive so a lot of tenants left and set up in Cremorne but it’s expensive there now and they’re starting to come back.”

An spokesperson for the Lemon Baxter agency commented:

“Richmond has got cool bars and train stations but we’ve got the market and Kings Way which gets you everywhere in Melbourne. The cool bars and cafes will follow.”