The Secret of Cremorne’s success
What’s driven Cremorne’s transformation into a magnet for city fringe development? As big-name firms move into this former industrial area, will Cremorne become a victim of its own success? Property Council’s Victorian Policy Assistant Nicole Mottek joined members on a walking tour in the heart of Cremorne.
Cremorne’s unique gritty urban feel, strong industrial heritage and transformation into a bona fide tech hub were seen first-hand during the Property Council of Australia’s recent Cremorne Walking Tour.
With growth in the Victorian economy pushing vacancy rates in the Melbourne CBD to a 10 year low of 3.6 per cent, a growing number of companies have widened their search to locations on the city fringe.
As Cremorne continues to exceed growth levels of other city fringe locations, what are the key underlying factors attracting businesses to the precinct?
According to Colleen Peterson, Chief Executive Officer at Ratio, “proximity to public transport, the cultural identity of Cremorne and the provision of amenities both within the commercial space and the surrounding area are crucial in the decision of firms to relocate in the area”.
The availability of space within the precinct is also an important factor, Peterson says, allowing for the future growth and expansion of businesses which have relocated.
Richard Jenkins, National Research Director at MaxCap Group, says shifting labour markets are influencing the transformation and resultant success of Cremorne. With millennials currently accounting for 38 per cent of the workforce, there has been a significant shift in workplace dynamics to more flexibility and choice.
Internal and external amenities are now “a key area of focus for attracting and retaining talent”, Jenkins says, with Cremorne “exceeding other fringe areas in its ability to provide companies with room to develop a space which embodies and supports its employee base”.
For this reason, the area has become increasingly attractive to a range of start-up and tech-related industries, with the establishment of multiple coworking spaces contributing to the creative atmosphere of the precinct. Inspire9, one of the first community-led coworking spaces for Melbourne’s start-ups, freelancers and creative entrepreneurs, was established in Cremorne, where it remains to this day.
Between 2012 and 2017, Cremorne experienced more than 90 per cent growth in professional services. With the precinct increasingly known as “Silicon Yarra”, what conditions have facilitated the evolution of Cremorne into an innovation hub?
Despite considerable pressure on the Yarra Council to consider rezoning to a mixed-use zone in the mid-2000s, the council maintained its position and the area remained an industrial and business zone 3. According to Peterson “if it wasn’t for the planning controls that restrict residential development throughout much of Cremorne, this precinct might look quite different today”.
Limitations surrounding the lack of an extensive road network and the proximity of residential land uses prevented a wide range of industrial uses emerging. Cremorne emerged as an attractive area for office development, appealing to tech companies and start-ups given its ‘anti-corporate’ environment.
By 2020, MYOB will become the largest commercial resident in Cremorne, occupying the office precinct of the new Malt District at the iconic Nylex site. Developed by Caydon, with Probuild constructing Stage 1, the site proposes to deliver a boutique hotel, function centre, shops and restaurants while conserving existing heritage building and silos. Both SEEK and Reece will also relocate to the precinct in new developments, joining tech-based companies REA Group, Vinomofo and carsales.com among others.
The question for Cremorne: given the exceptional growth within the area, is the precinct in danger of becoming a victim of its own success?
“The area certainly faces challenges moving into the future, which need to be addressed in order for it to continue to attract both developers and tenants,” says Colleen Peterson.
Parking stresses are significant, with further reductions a likely outcome as existing car parks make way for more offices. Additionally, substantial waivers in car parking requirements for developments by the local Council and VCAT are already commonplace.
Growing pressure for an increase in building height is a further challenge, with narrow streets, small block size and proximity to residential and heritage precincts all acting as natural inhibitors. While approvals for seven to 15 storeys are emerging in less sensitive areas, no structure plan currently exists to effectively guide building height within the precinct.
Cremorne faces one final challenge for future development: ensuring that it retains its unique fabric. From a history of murderous residents and infamous underground associations, the allure of the suburb lies in its grittiness.
“Cremorne embraces its individuality, with long-standing residents living side-by-side with panel beaters, website developers, architects and project managers” Peterson adds.
Can Cremorne retain it character without restricting development capacity moving forward? Jenkins says an emphatic yes.
“There are plenty of opportunities to repurpose and restore historical buildings for astute occupiers. Cremorne’s current success is just the beginning.”
The Property Council would like to thank our partners who contributed to the success of the Cremorne Walking Tour:
Host Partner:
Supporting Partners:
