EY getting set to shift its office in Melbourne after six-year wait
Big Four professional services firm Ernst & Young is preparing to move its Melbourne branch to the east end of Bourke Street, shifting from its current Exhibition base of almost twenty years.
According to industry reports, Ernst & Young will take up to 20,000 square metres at the 111 Bourke Street address, which is undergoing a revamp and has been rebranded from Southern Cross Towers to East End Place.
The Big Four firm moved from its earlier Collins Street address into its current location at 8 Exhibition Street as the tower’s anchor tenant upon its completion in 2005, with the 40-storey building presently bearing its name.
While no official announcement has been made, a market source cited by the AFR suggested the move could save EY “millions” in rent, although the firm only recently refurbished its current client-facing floors to enhance flexibility and collaboration. Yet, a report in the Australian from back in 2018 indicates the firm has been considering a shift in the city for some time.
“Our current Melbourne lease has an expiry of November 2022 and we are undertaking a market review to consider long-term options,” a company spokesperson told the publication at the time. “As part of this review, we have issued a request for proposals to landlords who are active in the market and have a strong track record of initiating developments if opportunities align.”
Originally developed by Cbus Property according to EY’s specifications, the article further speculated that the building’s current owners would likely have to upgrade its facilities if they wished to retain the Big Four firm. Yet, reflecting on the six years which have since lapsed underscores how much of a roller-coaster the consulting industry has been on.
With every indication the firm was on track to outgrow its current offices, the business world was suddenly hit head on by the Covid-19 pandemic and hurriedly shed staff. A boom period followed, albeit with work-from-home mandates. But now a fresh contraction has led to widespread job losses, including at EY, while many of the firm’s peers signed new leases during the good times.
The opportunity for EY to potentially save on rental costs – after suffering a 6 percent revenue downturn last year – may have arisen with the departure of Australia Post from East End Place’s smaller western tower, which was first announced in 2021. Meanwhile, BDO, Australia’s fifth-largest organisation of its kind, will double its office space in Melbourne via a move next year.
