Melbourne is expected to become an increasingly attractive option for large companies looking for space for their national headquarters
According to Rob Joyes, Colliers International National Director of Office Leasing, the recent announcement that David Jones will relocate its national headquarters from Sydney to Melbourne is an early indication of increased movement across state lines by major companies.
“A prime example of the attractiveness of Victoria for major companies looking to relocate their headquarters is the recent deal at Buildings 1 and 2, 572-576 Swan Street in Richmond,” Mr Joyes said.
“The buildings – which comprise more than 22,000sqm of quality office space – will now be home to the national head offices for David Jones and Country Road.
“This is a major win for Melbourne and we are thrilled to have assisted in this landmark leasing deal on behalf of landlord Growthpoint. The relocation is expected to create over 800 new jobs in Victoria.
“We foresee similar national tenants like this making the move to Victoria over the next two years.
“By 2019, our forecasts show that Melbourne will have an office vacancy rate of around 5.4%, compared to Sydney’s ever tightening vacancy rate which is expected to decline to around 3.9%. This suggests that it will become increasingly difficult for larger headquarters to move to preferred locations within the Sydney CBD.
“Melbourne is becoming a more favourable option for these companies, with not only the Melbourne CBD, but suburbs such as Richmond, South Yarra and Collingwood catering well for larger occupiers seeking quality office space.”