What Makes Cremorne the ‘Silicon Valley’ of Melbourne
Article | 3min read
by JONES REAL ESTATE on July 03, 2023
Over the past decade, Cremorne has skyrocketed in popularity among the Melbourne business community to become a vibrant melting pot for creative and technology innovation.
The transformation has been so dramatic that many people have affectionately dubbed the suburb ‘Silicon Yarra’ – a homage to San Francisco’s successful start-up haven Silicon Valley.
Cremorne embodies Melbourne’s entrepreneurial spirit, which has attracted many leading Australian and international organisations seeking a prime inner-metropolitan location for their office.
But what are the factors that have underpinned this surge in popularity? Why have valuations in the area enjoyed a tailwind in recent years? And what is the outlook like for the Cremorne commercial property market?
The Evolution of Cremorne
The establishment of Cremorne can be traced back to the mid-19th century, with the suburb deeply rooted in Melbourne’s warehousing and industrial history.
From a residential-perspective, Cremorne’s array of heritage protected terrace houses – like those on White Street, Chestnut Street and Walnut Street – have seen its tightly gridded thoroughfares dotted with former workers cottages explode in popularity among young professionals and families.
This makes the residential attributes of Cremorne very popular among millennials, who would prefer to live walking or cycling distance from their workplace in the inner-east, while having the option of working-from-home.
However, over the past decade, the suburb has experienced a period of significant change, undergoing what our commercial property sales team describes as an ‘Industrial Renaissance’.
This renaissance-esque movement has seen outdated warehousing and industrial buildings retrofitted to become incredible trendy, open-plan offices and co-working spaces – packed with state-of-the-art amenity that has driven high demand for them among start-ups and the established business world.
Why Creatives and Entrepreneurs are Flocking to Cremorne
Perhaps the main factor contributing to Cremorne’s success as a commercial hub among entrepreneurs and creatives is its flexible and forward-thinking approach to commercial zoning, which allows for bespoke office layouts in classic manufacturing buildings or complete ‘knock-down, rebuilds’.
Much of the suburb is situated atop versatile Commercial 2 Zoning (C2Z). This favourable overlay makes it able to accommodate a myriad of commercial businesses, spanning office, manufacturing, retail and other commercial services that might require specialised fit-outs.
Professionals living in the more densely populated eastern side of the CBD can access Cremorne easily on Brunton Avenue or by train – both of which require about ten minutes of travel time.
When catching the train, workers can easily access the area from both Richmond and East Richmond Stations, which is supported by a deep network of trams along Swan and Church Streets, as well as regular buses travelling along Punt Road/Hoddle Street.
There is a host of social amenity to be enjoyed in Cremorne and Richmond too. Along the nearby Swan, Church and Victoria Streets there is a vibrant and diverse mix of eateries that are perfect for either taking away or dining in, as well as retailers like Coles and Chemist Warehouse for everyday shopping items.
Some of our favourite local establishments in the area include cafes Cheeky Monkey and Sloan Ranger, lunch spots like Coe & Coe and Hugo’s Deli, as well as pubs and bars like The Cherry Tree, The Corner and The Precinct.
Which Leading Organisations Work From Cremorne?
Cremorne’s appeal as a commercial destination has grown exponentially in recent times, however it also extends far beyond the Australian business community.
Homegrown software companies like MYOB, carsales.com.au and Seek have chosen Cremorne for their headquarters, building state-of-the-art multi-storey offices to cater for their growing businesses and providing extra space for sub-let opportunities.
Global tech and software titan Uber has also setup offices and a vehicle service centre in the suburb, as well as other industry leaders in the creative and retail spaces, such as production house Walt Disney Company Australia, international toy retailer Mattel and Australian utilities provider Red Energy.
These are just some of the core brands that are solidifying Cremorne’s reputation as a melting pot for creative, technology and progressive retail organisations.
Future Growth Outlook for Cremorne
The outlook for commercial property valuation growth in Cremorne is very promising, due largely to the flexibility the suburb’s zoning provides asset owners and employers across different business industries.
And with demand for versatile workspaces increasing in city fringe areas, we expect to see further value increases in Cremorne as old properties hit the market and new stock comes online.
Cremorne’s idyllic positioning on the eastern fringe of the CBD is another reason why we expect demand in the area to remain strong.
It is just a short walk from Melbourne’s world-class sporting and entertainment precinct including the MCG, AAMI Park and Rod Laver Arena, and enjoys excellent connectivity to Melbourne’s public transport network, major arterials and bike paths.
Cremorne Street provides drivers with easy access to the Monash Freeway, making travel to the eastern suburbs and Melbourne Airport a sinch, while Punt Road enables direct travel to the Eastern Freeway and the city’s northern suburbs like Fitzroy, Brunswick, Northcote and Preston.
Recent Deals and Permit Approvals in Cremorne
One transaction managed by our experienced commercial property sales team that embodies the forward-thinking development attributes of the suburb is 99 Green Street, Cremorne – which was purchased by developer Riverlee in 2021.
This former industrial 313 square metre property sold for $3,725,000 million by Jones Real Estate selling agents Paul Jones and Tim Spargo and has just received permit approval for a stylish multi-storey commercial office building by Six Degrees Architects, championing a strong focus on sustainability, operational efficiency and design excellence.
Other leading developers are also making bold plays in Cremorne, including Time & Place and MaxCap which have been approved to build a nine-storey commercial tower at 75-119 Cubitt Street comprising 13,500 square metres.
Plans filed by Vered Nominees have also been green-lit in the suburb, which will introduce a 12-storey mixed-use hotel building and ground-floor commercial offering at a corner site at 14-18 Cremorne Street.
If you would like to learn more about commercial real estate in Cremorne, current sales and leasing opportunities in the area, or would like to discuss a separate property matter, please connect with us at email@example.com.