Google tipped to move to new Melbourne office
Google looks set to move its Melbourne office into the T&G Building at the Paris end of Collins St, as technology tenants step up their influence in the east coast capitals’ office leasing markets.
The search giant has a small team in a serviced office at 90 Collins St and speculation is swirling that staff will move into the landmark building at 161 Collins St, although it appears no deal has been finalised.
One reason for the move could be that Google has outgrown its current space. Floorplates of around 4000sqm are available in the T&G Building although the tech titan is tipped to need less than a whole floor.
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Google declined to comment.
The owner of the T&G Building, US property investor Pembroke which is part of funds giant Fidelity, has previously expressed confidence in the demand from tech companies looking for premium office space.
Pembroke vice-president and head of Australia Matthew Knight declined to comment on the speculation but says tech companies are driving the leasing market “at a rate of knots”. Pembroke is refurbishing the building, due to be complete by February, adding a tenant lounge, cafe, greenery and end of trip facilities. The landlord has already signed tenants including professional services firm Accenture and wealth manager IOOF, with Bottega Veneta to open a retail store.
Tech companies have been actively considering their office needs. Homegrown job search giant Seek is moving 800 staff to a new purpose-built office in Melbourne’s emerging technology hub in inner-eastern Cremorne, near Richmond.
The group will take a long-term lease and will move in 2020-21.
The listed group’s new office developed by Cremorne Properties, headed by private investor Gus Cooper, will be near other tech players including Carsales.com.au, MYOB, REA Group, the Inspire9 co-working space for start-ups and freelancers and a number of digital agencies.
Tech companies in Sydney have been moving into the CBD instead of taking space in the traditional tech hub of Macquarie Park, a recent report from Cushman and Wakefield found.
Tech firms signed about 40 new leases in Sydney’s CBD in the last year totalling about 64,000sqm, the research said in July.
The tech industry will pass the finance and insurance sectors as the top driver of Sydney CBD office space take-up over the next five years, research predicts.
This article originally appeared on www.theaustralian.com.au/property.
