Australia’s Best City for Business
The Melbourne vs Sydney rivalry is as old as time. 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. Each fanbase is passionate and vocal, and you’d be hard-pressed to find someone who doesn’t have an opinion about which city is the country’s best.
Well, we feel like we can finally put the fight to rest by declaring that Melbourne provides Australia’s best business environment. 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.
The opportunities created in this world-class city can be traced back to good governance and notably, lower property prices. Commercial and Residential Property Prices have the same flow on effect – better living standards – and it creates amazing opportunities for SME businesses.
We believe 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. Toyota went one step further by relocating its Australian headquarters from Sydney to Melbourne in 2014, and in 2018 major retailer David Jones (owned by South African Woolworths) made the same relocation, reportedly to “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
Melbourne Snapshot
- 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 expected to maintain its Number One place on this mantle.
- Co-Working operators are also 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. There are still good deals to be had, backfilling into space vacated by those relocating into new developments.
For more information contact Matthew Pollak by email