As Australia continues to recover from the impacts of COVID-19, Melbourne’s office market has started to see signs of revival, with inner suburban locations leading the way.
Hawthorn has grabbed the spotlight as an emerging office market in 2021, off the back of more flexible working arrangements and increased demand across the inner suburbs, according to Melbourne-based property agency Fitzroys.
Fitzroys associate Stephen Land has recently negotiated three leases in the suburb, and said that clients are seeking to be in more central locations while also being “out of the CBD”.
“There are plenty of businesses seeking a move to city fringe and inner suburban locations to be closer to their home, making it easier to access the workplace and collaborate with colleagues in person during a period of more flexible working hours and arrangements,” he explained.
“For some, a move to a more central location may be the most appropriate course.”
The suburb’s location means that it is well serviced by public transport, while also easily accessible via car through nearby major arterial roads, according to the associate, who also highlighted local food, beverage and lifestyle amenities as being favoured by many businesses and workers.
Not only that, but “[Hawthorn is] offering more competitive rents as opposed to suburbs right on the city fringe”.
Mr Land said: “There were very high levels of enquiry for these offices given the limited size offering in the area and the affordable rental level.”
Trends among tenants
Aside from the shift in location choice, Mr Land said that shorter-term leases and multiple options are characterising the preferences of Melbourne tenants today, while the state’s COVID situation remains fluid.
It means demand and supply across all parts of the Melbourne market will continue to shift, he concluded.