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Flexible office provider Victory Offices has chosen Dandenong as its next non-CBD location, in a bid to meet increased demand for outer suburban office space in Melbourne.
The Melbourne-based company, which offers workspaces including private, virtual, day and co-working offices, has leased a 1000-square-metre space on level two of the former Chisholm Institute TAFE facility, at 311 Lonsdale Street in Dandenong – 30 kilometres south east from the Melbourne CBD.
Set to open in August, permanent co-working spaces are available from $400 per month, while one-team member offices are priced at $900 a month.
Chaired by former Victorian Premier Steve Bracks, Victory Offices has 12 CBD locations across Melbourne, Sydney, Brisbane and Perth since the company’s launch in 2014.
Other Victory Offices locations are set to open in St Kilda, Sunshine, Box Hill, Chadstone and the CBD during August to October.
Victory chief executive Dan Baxter said while other flexible providers are focused on the CBD exclusively, Victory is investing in expanding their suburban offering as well.
Dandenong was the new epicentre of Melbourne’s booming south-east growth corridor and was well on the way to becoming a new suburban business and industry hub.
“Vacancy in the Melbourne CBD is the lowest it’s been in more than 10 years but there is an increasing need for space as many new businesses enter a growing economy,” he said.
Mr Baxter said Victory Offices currently has six locations in the Melbourne CBD and moving into the metropolitan area was a strategic extension of the business.
“The rise of e-commerce has changed the view of the suburbs from a business perspective,” he said.
“We are seeing demand from small and start-up business for these locations. We offer low-cost and ready-to-move-in options for the fast-growing tech business market who all need flexible space to help them grow.”
The move to Dandenong was aimed at building a varied portfolio to offer the market greater choice, Mr Baxter said.
“The standard remains high, as we know the office setting makes a significant difference to our clients. We see ourselves as offering an entirely different product to players like WeWork, in that we offer a premium office solution with an all-inclusive price.”
Colliers International associate director Kevin Tutty said he was unaware of other flexible office solutions in Dandenong, despite strong demand for quality space with good amenity.
“There is a progressively positive sentiment for the Dandenong commercial precinct and optimistic long-term prospects for the heart of the Dandenong City,” Mr Tutty said.
“This has had knock-on effects in the commercial property market with rents increasing and incentives levels moving lower.”
Businesses in the health sector, services and a start-up consultancies have secured tenancies in the new premises so far.
The new Melbourne sites are part of Victory’s aggressive expansion and follow recent CBD openings across the country that include a 3000-square-metre space at St Kilda Road, Melbourne and an 1100-square-metre space at Elizabeth Quay in Perth.