Colliers International fields unprecedented enquiry for creative work space in Cremorne
The conventional office, complete with white walls, cubicle desk arrangements and flickering fluorescent lights, could become a thing of the past as more businesses steer away from traditional layouts in preference of creative floor plans.
Colliers International is at the forefront of this activity in Melbourne, closing four deals in the Cremorne and Richmond areas in the past six weeks, in a growing trend that suggests atypical work environments can stimulate productivity and innovation.
Metro office leasing agents Chris Meehan, Travis Myerscough and Damien Adkins have negotiated lease terms for creative office space at 118 Balmain Street, 100 Cubitt Street and 165 Cremorne Street in Cremorne, and 651 Victoria Street in Richmond.
“In recent times, the demand for unconventional office space has been the most notable request from the modern-day tenant,” Mr Meehan said. “By inhabiting creative offices, businesses are endeavoring to reflect their unique offering to potential clients by their physical surroundings. This recent market trend has been no more popular than in Cremorne.”
Cremorne’s industrial past still permeates through its one-way streets and red brick factories and has become a defining feature in several office fitouts.
“Many of the landlords in this precinct have kept the old façades of their buildings, which create a distinctive juxtaposition between the business of the old and the new,” Mr Meehan said. “The surrounding amenity of trams, trains and bike routes also complement modern businesses. Tenants are increasingly moving away from auto dependence and the public transport access in Cremorne is exemplary.”
Colliers International’s recent transactions have been indicative of the type of tenants flourishing in the area. On November 1, tech start-up company RateMyAgent relocated within the area from a 300sqm office to a 600sqm office on Balmain Street.
“Tenants, in this line of business, can grow exponentially so it’s important that there are larger offerings for them to grow into,” Mr Meehan said.
Around the corner on Cubitt Street, marketing company W3 Digital is moving a few properties away to take up a level-three space in a new development.
“We are witnessing tenants wait up to six months for the right space to be developed, which exemplifies the increased demand and shortage of supply for premium office space in Cremorne,” Mr Meehan said. “This deal was transacted at a record rate for the area. Tenants are happy to pay a premium for a space that reflects their creative offering and prosperous business model.”
More conventional tenants are also moving away from the standard besiege office offering, Mr Meehan said. In Cremorne Street, for example, construction company Total Construction will take 300sqm of office with exposed concrete ceilings and polished floors.
“It doesn’t matter if the tenants are in finance, law, construction or environmental consulting, most requests are for exposed surfaces, polished concrete and great natural light,” Mr Meehan said.
He said creative work spaces would become the preferred choice of discerning tenants, as they opened up a plethora of options for prospective tenants.
“In the Melbourne metro market, it can be tedious finding the right tenant,” he said. “Providing a unique offering where tenants are excited to come to work will ensure a long-term tenancy, a favorable rent and an amiable relationship between lessor and lessee.”