Developers pounce as big CBD companies turn to city fringe offices

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Cremorne has become a magnet for technology and creative companies, reflecting a decade-long shift that is being amplified by the pandemic as companies look to relocate out of the CBD. simonjohanson reports.

Developer Bill McNee is taking advantage of big-city companies’ newfound willingness to sign leases in trendy city-fringe locations, swooping on a prime Melbourne development site for $53.5 million.

Mr Murray amassed the site after adding a final piece from the Schwartz family when he paid more than $10 million for a 761 square metre portion at 33 Cremorne Street in 2017.Cremorne, a tiny inner fringe suburb stacked with old brick warehouses and fresh new offices, has become a magnet for technology and creative companies, reflecting a decade-long shift that is being amplified by the pandemic as companies look to relocate out of the city centre.

Another once run-down industrial suburb, South Melbourne, is also attracting investor attention. Two months ago, ASX-listed Centuria Office REIT pounced on an office at 101 Moray Street developed by the wealthy Deague family for $205 million.

 

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