Tech companies look for office space beyond Sydney's CBD
Software start-up Accelo has its headquarters in San Francisco, but the main engine room of its business, with all its tech heads, is located in a place many wouldn’t necessarily consider when they think of tech: Wollongong.
“But it really works for them,” said Michael Croghan, director of commercial leasing at MMJ Wollongong. “Twelve months ago, they had 30 people here and now they have 450 and they’re still looking for further growth.
“They said San Francisco is so competitive for staff, and it’s hard to keep them, and they come and go at the drop of a hat. But here, people never want to leave because of the great lifestyle and they can pick up graduates straight out of the University of Wollongong, which has a big IT department.”
And that company isn’t alone in expanding from a big city to a regional NSW hub.
Martin Braithwaite, general manager of NEC Australia, invested $25 million to set up an office for 120 staff in Wollongong in 2016 – and has never looked back.
“It’s a university town and we’re in an innovation centre and tech hub, and Wollongong’s still very close to Sydney and, as a global company, we like to have an airport nearby,” he said. “We’ve also had a big payback on our retention strategy because people love working in such a centre of excellence.”
With office space in Sydney becoming more expensive, cities like Wollongong are becoming increasingly attractive – and affordable. There are $1.5 billion worth of projects completed or under construction, with more than 40,000 square metres of commercial real estate becoming available, of which 28,000 square metres is A-grade office space.
In addition, research by Fifth Quadrant found Wollongong was 33 per cent cheaper to set up business in than the Sydney CBD, 24 per cent cheaper than Parramatta, and 29 per cent cheaper than the Melbourne CBD.
“Affordability is a key factor in our success,” said Mark Grimson, spokesperson for Invest Wollongong, which was set up with the local city council. “Lifestyle is the other key factor.”
People can live and work in Wollongong and walk to the office, or drive there in under 15 minutes and still live on acreage and see the water from their home.
“The residential real estate market has also been buoyant in recent years with a lot of people moving here and, over the next 24 months, there’s going to be a 36 per cent uplift in the amount of A-grade office stock under construction. We now have the most cranes on the skyline of any city in regional Australia outside the Gold Coast!”
