MYOB to sub-let top two levels of new, readdressed Cremorne HQ

MYOB’s headquarters, now known by the address of 168 Cremorne Street, Cremorne, is the first office within Caydon’s master-planned Malt District, which will incorporate concrete silos and the Victoria Bitter sign (right) and Nylex clock.

EXCLUSIVE

MYOB is seeking to sub-let the top two floors of its newly completed headquarters in Melbourne’s inner-east Cremorne.

The software giant is quitting 2800 square metres – nearly a third – of the office it pre-committed to in 2018.

Following its assignment, the multinational-group will still occupy about 6000 sqm.

This will accompany a 5250 sqm tenancy MYOB will retain across the road at 167 Cremorne Street – otherwise known as the Stitches building.

The Beaver Packaging factory at the address formerly known as 17-21 Harcourt Parade. Source: Google Street View.

A company spokeswoman said a consolidation at Cremorne (it has rented three offices there since 2016) was always on the cards as part of its staged relocation from Glen Waverley.

Gone is the address 17-21 Harcourt Parade

At the time MYOB pre-committed to its new base, the property was known as 17-21 Harcourt Parade and accommodated the Beavers Plastics factory (pictured, right).

The 3050 square metre site (shaded) which made way for MYOB’s newly completed headquarters stares over the Yarra River to Melbourne’s CBD.

Now it is a nine story, 8800 sqm office with ground floor retail it has been rebranded as 168 Cremorne Street.

MYOB’s landlord is AXA Investment Managers which paid the developer Caydon $100m for it on a funds-through basis in September, 2018.

MYOB HQ the first piece of Malt District

Caydon incorporated the MYOB headquarters site into its Malt District precinct next door which contains the high-profile silos and Nylex clock near Punt Road.

The master planned village will include a microbrewery and retail with a supermarket.

It was to have contained hundreds of apartments, however last year the design was changed to replace two pieces of the project – a site at the corner of Punt Road, and the neighbouring concrete storage towers with the Victoria Bitter sign – with offices.

Some residences have recently been developed on the block, however.

MYOB’s sublet space…

JLL’s Joshua Tebb and Matt Brown-Greaves with CBRE’s Anthony Park and Joshua Jennings are sub-letting levels seven and eight of 168 Cremorne Street for MYOB

Configurations are being promoted from 500 sqm (story continues below).

The asking rent circles $525 per sqm, per annum, ex-incentives.

With natural light from four sides, Mr Tebb added the office’s outlook “is spectacular” staring up the Yarra River to the CBD.

It also has a north facing aspect over Cremorne.

…was always on the cards

MYOB Australia PR and Corporate Communications manager, Collette Betts, said that – excluding the space it is offering for sublet – office occupancy has increased 16 per cent since moving to 168 Cremorne St.

“We are excited about our ever-growing footprint in ‘Silicon Cremorne’ where more than 1400 MYOB employees will be based in this thriving technology precinct,” the executive added.

“On signing the lease agreement for 100 per cent of the commercial space in 168 Cremorne St, our intention was always to sublet a portion…which presents a very attractive opportunity for other businesses to join this cutting-edge community.”

MYOB tested Cremorne before move

The Burwood East building at Tally Ho when it was headquarters to software giant MYOB before 2015.

For years headquartered at Burwood East’s Tally Ho business park (office pictured, right), MYOB in 2015 moved to a 4900 sqm base atop of The Glen shopping centre in Glen Waverley, 19kms south east of the city.

A year later, it leased 2755 sqm at 167 Cremorne St for its technical engineering and experience team.

The occupier chose the precinct – a revered hub for creative and IT-related businesses – after research showed its staff no longer wanted to work in middle-ring Melbourne.

In March, 2017, the software group expanded in Cremorne, sub-letting part of Investec’s high-profile 449 Punt Rd from carsales.com.au.

The following year MYOB moved employees from Punt Road to 167 Cremorne St after almost doubling its tenancy to c5250 sqm.

The occupier also started branding itself at the Stitches complex – suspending two enormous banners on part of the office abutting Citylink.

When it pre-committed with Caydon, the IT company said it would become Cremorne’s biggest occupier.

In fact, that title will belong to employment website seek.com.au which in 2019 announced it would quit St Kilda Rd for about 20,000 sqm of an office Gus Cooper and Michael Gannon’s Cremorne Properties is building at 60-88 Cremorne St.

The same developers are planning an 11,500 sqm-plus commercial complex with a public plaza at 68-88 Green St, Cremorne.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco