Melbourne: Australia’s Best City for Business
The Melbourne vs Sydney rivalry is as old as time. Each fan-base is passionate and vocal- Sydney fans rave about the sunshine, while Melbourne lovers obsess over their city’s coffee. Melbournians list their large number of sporting options, while Sydneysiders offer up a list of beaches that span the coast. You’d be hard-pressed to find someone who doesn’t have an opinion about which city is the country’s best.
We can finally put this fight to rest by declaring that Melbourne is Australia’s best business city. Five of the Top 10 Australian companies call Melbourne home and we know why. Melbourne is:
- Australia’s sporting, nightlife & fashion capital;
- the capital city with the strongest population growth forecast;
- the city that provides the strongest SGP (GDP by state) by landmass; and
- consistently Australia’s highest-ranking city on world ‘liveability’ rankings.
Good governance and notably, lower property prices have created a mass amount of opportunities in this world-class city. Commercial and Residential Property Prices also have the same flow on effect – better living standards – and it creates amazing opportunities for SME businesses.
Above all, we believe in this so much that we’ve launched our second Australian Tenant CS office, in Melbourne!
“With a bigger economy than Hong Kong and Singapore, and an increasing appetite from national and international companies to be represented by a local representative, having an office in Melbourne was the natural growth for my business.”
-Tim Green, Managing Director- Tenant CS
Melbourne Business Opportunities
Tenant CS are not the first to think of Melbourne. For example, Toyota went one step further by relocating its Australian headquarters from Sydney to Melbourne in 2014. Additionally, in 2018, major retailer David Jones made the same relocation, to reportedly “save the group about $10 million a year”.
Other major international businesses with headquarters in Melbourne include:
- BP • Toll Holdings • Energy Australia • Daimler Australia • BUPA • Asahi Holdings • ExxonMobil • Mondelez • Cargill • CITIC • Glencore • GSK • Siemens
It’s easy to see why! Melbourne’s better business opportunities relate back to its lower – than Sydney – property prices (both residential and commercial), here’s how:
- Population said to overtake Sydney by as early as 2030 (but more likely closer to 2040)
- Population density at 28people/sqm vs Sydney 10people/sqm (Staff live closer to work!)
- Commercial Property in Melbourne remains the tightest of Australia’s CBDs, with just 3.3% vacancy at July 2019. Considering the controversial C270 development restrictions (affecting setbacks and FSR), softening interest rates and population growth, Melbourne is to maintain its Number One place on this mantle.
- Co-Working operators are forecast to have 38,000 sqm of vacancy on their Melbourne books, which accounts for an additional 0.5% of vacancy not included for the above Melbourne vacancy statistics – technically the spaces are leased but available for sublease.
- While over 400,000sqm of office space is under construction, over 80% of that is pre-committed. Hence, good deals are still coming, backfilling into space vacated by those relocating into new developments.
Your Next Lease Term
Tenant CS are a Commercial Tenant Representative business who are independent from all major real estate agencies. We are Commercial Property Negotiation Specialists who assist tenants renegotiate with their current Landlord or source & relocate to a more suitable workspace – whether Co-working, Industrial, Warehouse, Office or Retail. Most importantly, by staying independent, our advice and ability to negotiate is unbiased and client focused – we only represent tenants.
While our team has operated throughout Asia and Australia for the last 8 years, by opening an office in Melbourne’s CBD we’ve improved direct access to southern-based Landlords – ensuring better leasing outcomes for tenants.
When Do You Call Tenant CS?
- 12 months to lease expiry: Drop everything and call now!
- 1-2 years to lease expiry: This is the sweet spot. We will have time for a Tenant CS Definition of Needs Workshop and to develop the Leasing Strategy that best suits your business.
- 2-3 years to lease expiry: Let us help you understand your lease encumbrances (key dates and clauses) so you can plan for your next lease term whether the plan is to ‘Stay or Go’.
Matthew is heading up the Melbourne Office. He is a highly skilled lease negotiator, with over fifteen years’ experience in commercial real estate.
M 0402 111 311
Director- Asia Pacific
Francois has over ten years’ experience in commercial real estate across various markets. Previously representing global tenants from Paris and Mumbai, he now works across Asia Pacific.
M 0428 272 119