Melbourne office space guide 2023

Searching for the perfect office space in Melbourne? Selecting a workspace is one of the most pivotal decisions every business will make and there are several considerations you should recognise. 

Understanding organisational needs and preferences can be the difference between empty, underutilised office space and a thriving environment with satisfied employees. The city of Melbourne has a variety of different locations, sizes, layouts, amenities, lease terms and budgets to suit all businesses. 

Ready to broaden your horizons? In this guide, prepare for a comprehensive understanding of traditional office and flexible workspace solutions, including coworking spaces, virtual offices and serviced offices.

Is Melbourne the city for your business? 

If you're a Melbourne local, then it's likely that this city is already your preferred business location. But for others looking to establish their headquarters in another city, let's see if the facts below make Melbourne an enticing destination for you. 

Melbourne fast facts: 

• Stable political environment: establishing your headquarters in an environment with business-friendly regulations is a must and commonly underrated. Melbourne's local government is known for its pro-business stance and support for entrepreneurship. 

• Liveability: ranked as the third best city to live in the world, Melbourne will tick all of your boxes for quality of life. Essentials such as healthcare, public transport, along with arts and culture, have created a happier population in the city. 

• Projected growth: Melbourne is home to an abundance of top talent, which will continually grow. The city is expected to have 600,000 new jobs and 270,000 new residents by 2031 – indicating significant growth potential. 

• Sociability: this city is home to very friendly people, which allows gaining new friendships and many business networking events. 

As of late 2022, the city had 560,467 small businesses, which is an excellent indication of growth for anyone. Melbourne attracts the broadest range of industries, such as legal, tech, mining, education, environmental, medical, biotech, finance, and a plethora of other professional services. 

How much does office space in Melbourne cost? 

Research suggests that prime office space costs $655 per square meter. With the average office space per employee being 14 square meters (about half the area of a parking space), that's $9170 per month for one worker in a prime-grade office. 

Conventional office space in Melbourne is in no shortage but has become less preferred as employees' choice for hybrid has driven higher vacancy rates. The average vacancy rate in the CBD is 16.2 percent, an alarmingly high surge that indicates instability for businesses. 

This challenge comes as remote and hybrid work has left office desks empty. Electricity, rent and utilities are still being charged to companies, leaving them out of pocket for a ghost town workspace. 

Now that employees expect hybrid arrangements, the best solution is downsizing your office space with a rotational roster or simply switching to flexible workspaces.

Coworking spaces in Melbourne 

Every form of projection foresees coworking spaces to double or triple in size and monetary value. Coworking spaces in Melbourne are not a fad and have a strong appeal in the hybrid work culture. 

Reduced costs and flexible lease terms have made them an ideal solution for the current market, along with its office-like amenities. Coworking spaces can be leased on a monthly, half-yearly and yearly basis. 

They are suitable for almost all industries and are adequate for running businesses of all sizes. 

Here are some key factors you should consider when selecting a coworking space in Melbourne. 

Location: What address does the coworking space have? Your business address plays a vital role in the perception of potential clients and visitors, so you'll want to select a location that delivers a desirable impression. 

Prime-grade addresses such as 101 Collins Street, 140 William Street and 1 Southbank Boulevard will leave prospective business inquiries assuming your company is credible and will deliver results. 

Such locations are also easily accessible by car and all forms of public transportation. 

Cost: Leasing offices in prime-grade locations is generally expensive, but with a coworking space, the cost becomes a fraction. However, it's essential to avoid opting for the cheapest workspace. 

Ensure that the coworking space fits within your budget, but question the services you receive. Are mail forwarding services included? Is the address of quality? Is the coworking space safe? How loud is it? Does the environment seem professional? 

Overall, the coworking space should offer much more than a desk with a chair. 

Services: We're not talking about yoga classes and sleeping pods. While they may be nice, every business should focus on leasing a coworking space with services that enhance their operations. 

Look for coworking spaces that offer call answering, mail forwarding, secretarial assistance, IT support, impressionable addresses and private booths for answering the phone. 

Virtual offices in Melbourne 

Most fully remote companies assume there are no workspace solutions for their particular business model. But to their surprise, the virtual office is a highly sought-after option for remote operationality. 

Virtual offices in Melbourne are commonly leased by law firms, business advisors, real estate companies, IT consultants and Engineers.  

A complication businesses must navigate with virtual offices is being mindful of which one they select. Apply the same principles of selecting a conventional office to your virtual office. 

Regardless of a company being remote, it shouldn't sacrifice its perception and neglect valuable services that propel its image as high as any global enterprise. Several virtual office providers offer leases from $20 or less, and without being critical of why the price is so low, businesses will make mistakes. 

Carefully analyse and compare the offerings to long-standing virtual office providers such as Servcorp. For example, Servcorp's virtual offices in Melbourne include up to 60 monthly hours of free coworking space usage. 

It enables hybrid capabilities by letting businesses work remotely, yet a professional work environment is also included in the package. Coworking spaces also have technologically equipped boardrooms that can be paid for by usage, giving complete autonomy over your needed services. 

Serviced offices in Melbourne 

If a traditional workspace environment is a non-negotiable part of your business, look no further than a serviced office. 

The private workspace comes fully furnished with all the technology needed to start working immediately.  

Like all flexible work solutions, serviced office tenants in Melbourne enjoy short lease terms. When selecting a serviced office, be sure to inquire about cybersecurity and research the company's stability. 

The last thing a business wants is leasing commercial real estate from a company that isn't stable and might be volatile. As for cybersecurity, ensure there are options for VLAN and VPN connections, along with custom firewall security. 

For example, a Servcorp serviced office has custom security available thanks to their onsite IT team. This can be a major benefit for industries that have strict security regulations and prioritise data security. Ensure your serviced office is in a great location and can be easily accessible by public transport to keep daily commutes stress-free.

What's around the best office spaces in Melbourne? 

Knowing what's around your office space is a must, after all, you'll spend plenty of time there! 

101 Collins Street 

Whether you have a serviced office, coworking space or virtual office at 101 Collins Street, here are some landmarks that you should know about. 

• Parliament House 
• Old treasury building 
• Gardens (Fitzroy Gardens) 
• Theatres 
• Parliament Train Station 
• Flinders Train Station 
• MCG 
• Only 22 kilometers from the airport 

140 William Street 

Law firms often favour this location, and these nearby landmarks will show why. 

• Supreme Court of Victoria 
• County Court 
• Southern Cross Station 
• Chambers' 
• Marvel Stadium 

Southbank Boulevard 

The location lives up to its name with an array of landmarks you'll love. 

• Aquarium 
• Views of the Yarra 
• A range of restaurants 
• Casino 
• Melbourne Skydeck and Eureka Tower 
• NGV 

Things to do in Melbourne 

Many people know that Melbourne isn't just a business hub and the city is an electrifying metropolis of Australia with exhilarating experiences. 

Every office worker loves a good morning coffee and Melbourne is known as the coffee capital. The city is a foodie heaven that will ensure no dull lunchbreak and its dining experiences are nothing short of remarkable. 

You can also look forward to these common reoccurring events: 

• Melbourne Cup Carnival 
• Melbourne International Comedy Festival Melbourne International Film Festival 
• Melbourne Grand Prix 
• Australian Open 
• Fashion Week 

In Melbourne, the excitement never ends. The city's vibrant culture, diverse experiences, and dynamic lifestyle will ensure that your journey as a business leader is as thrilling as it is rewarding.  

So, as you consider Melbourne as your head office location, prepare to be dazzled by a city that will inspire your team, stimulate your creativity, and make your business dreams come to life in the most exciting way possible. 

People who read this article also read the Adelaide Office Space Guide and Sydney Office Space Guide.