3. Attractive for new businesses

As a prosperous city, Melbourne will be a place for the creation and growth of new businesses. Its affordable accommodation and accessible facilities and services will attract new businesses to operate from the city. The way business is done is changing and as a prosperous city, Melbourne will adapt to accommodate emerging trends and business models.

In Melbourne and around the world, economies are shifting away from manufacturing and production and towards services. Businesses are becoming leaner and faster with a short life-span based around a single idea, technology or discovery. These businesses will often develop one product, sell it to a larger organisation and then quickly move onto the next initiative. Collaboration and joint ventures are more common today as businesses combine their complementary skills to gain competitive advantages.

City business accommodation is becoming more expensive. To support knowledge-rich but capital-poor businesses, flexible and creative solutions from the property sector are needed to develop new business accommodation models. In tandem, residential housing should be similarly affordable in the city so workers can be within easy commuting distance of their jobs.

In addition, as Melbourne's on-going industrial and manufacturing role continues to change, the importance of maintaining a diverse economy and the flexibility to provide options for new activity in the future in the vicinity of the growing Port of Melbourne, need to be preserved.

Goals	Indicators	Outcomes
Affordable space for business Diverse, affordable and flexible accommodation is available to facilitate business formation, growth and expansion. Capital city leadership is demonstrated by piloting and supporting new forms of accommodation and innovative space.	Average rent for office and retail space. Office space (2007): Premium-grade: $360-540 m2 per year A-grade: $290-315 m2 per year B-grade: $215-285 m2 per year. Retail space (2007): Prime rentals in the Melbourne CBD range from $1,400 per m2, for secondary retail, up to $5,600 per m2 for small super-prime retail space in the Bourke Street Mall and on Swanston Street. ¹	A variety of affordable spaces are available for new business to establish and for existing businesses to expand. Under utilised public spaces and facilities are used for short-term retail projects such as pop-up shops or short-term opportunities so that prospective retailers can test the market for their product or service. A whole-of-life-cycle approach to business formation and growth exists (wherein businesses may initially develop at less expensive locations graduating up to premium grade locations).
Utilise long term, usable vacant property Incentives are identified and introduced to allow long term vacant properties (but in usable condition) in the city to be made available to new businesses.	Commercial / industrial premise long term vacancy rates	The municipality has attracted new and start up knowledge-rich, capital-poor business to set up their operations. Vacant buildings are managed to allow for short term use of of the space.
Industrial and commercial land supply/ accommodation Construction of commercial and industrial space keeps pace with demand. Flexibility in design, construction and scale to provide for growth and future demands.	Proportion of land in the municipality, which is used for commercial/industrial accommodation. Current: Commercial accommodation 674,245 ²	Land is available and able to be developed for appropriate commercial and industrial uses. Supply of commercial and industrial property is maintained. Design of new buildings allows for flexible use and reuse.
Online business Businesses operating primarily online or using distributed networks to make connections and look for joint collaborations are supported.	Number of business grants for online businesses. Current: In 2007, there were two from the municipality.	Increase in growth of online and virtual business.
Leadership and support in business A business support facility helps new and emerging businesses start up and operate in the municipality.	Number of new businesses operating in the municipality. Current: indicator to be developed. ³	Establishment of new businesses is supported and encouraged. Innovation in business methods and opportunities. A City of Melbourne-operated or part-funded brokerage service to enable firms to host (and mentor) compatible start-ups and micro businesses using spare office accommodation and infrastructure.

Goals

Indicators

Outcomes

Affordable space for business

Diverse, affordable and flexible accommodation is available to facilitate business formation, growth and expansion.

Capital city leadership is demonstrated by piloting and supporting new forms of accommodation and innovative space.

Average rent for office and retail space.

Office space (2007):

Premium-grade: $360-540 m2 per year
A-grade: $290-315 m2 per year
B-grade: $215-285 m2 per year.

Retail space (2007):
Prime rentals in the Melbourne CBD range from $1,400 per m2, for secondary retail, up to $5,600 per m2 for small super-prime retail space in the Bourke Street Mall and on Swanston Street. ¹

A variety of affordable spaces are available for new business to establish and for existing businesses to expand.

Under utilised public spaces and facilities are used for short-term retail projects such as pop-up shops or short-term opportunities so that prospective retailers can test the market for their product or service.

A whole-of-life-cycle approach to business formation and growth exists (wherein businesses may initially develop at less expensive locations graduating up to premium grade locations).

Utilise long term, usable vacant property

Incentives are identified and introduced to allow long term vacant properties (but in usable condition) in the city to be made available to new businesses.

Commercial / industrial premise long term vacancy rates

The municipality has attracted new and start up knowledge-rich, capital-poor business to set up their operations.

Vacant buildings are managed to allow for short term use of of the space.

Industrial and commercial land supply/ accommodation

Construction of commercial and industrial space keeps pace with demand.

Flexibility in design, construction and scale to provide for growth and future demands.

Proportion of land in the municipality, which is used for commercial/industrial accommodation.

Current: Commercial accommodation 674,245 ²

Land is available and able to be developed for appropriate commercial and industrial uses.

Supply of commercial and industrial property is maintained.

Design of new buildings allows for flexible use and reuse.

Online business

Businesses operating primarily online or using distributed networks to make connections and look for joint collaborations are supported.

Number of business grants for online businesses.

Current: In 2007, there were two from the municipality.

Increase in growth of online and virtual business.

Leadership and support in business

A business support facility helps new and emerging businesses start up and operate in the municipality.

Number of new businesses operating in the municipality.

Current: indicator to be developed. ³

Establishment of new businesses is supported and encouraged.

Innovation in business methods and opportunities.

A City of Melbourne-operated or part-funded brokerage service to enable firms to host (and mentor) compatible start-ups and micro businesses using spare office accommodation and infrastructure.