The company is exploring a move from its long-standing base in Southbank, where it has leased office space since 1995. Areas being considered include fringe suburbs such as Cremorne and Richmond, along with parts of the CBD and Docklands. The review has ruled out more premium locations, including the "Paris end" of the city and the Flagstaff precinct. REA Group, in which News Corp holds a majority stake, is not involved in the review and will continue operating from its facility in Cremorne.
The potential relocation was outlined through a formal accommodation brief, with proposals requested by Thursday. While News Corp has made no public statements, industry sources suggest that the company regularly evaluates its office requirements based on lease cycles, market conditions and opportunities for cost savings.
This latest review comes after a 5% year-on-year drop in global advertising revenue for its news division, equalling a US$39 million fall. In Australia, total revenue declined from US$929 million to US$895 million, mainly due to weaker print and digital advertising sales. These financial challenges are likely contributing to the reassessment of office needs.
Melbourne's elevated office vacancy rate is another factor. Although there has been a modest improvement, the city's CBD recorded a 17.9% vacancy rate in July, the highest among Australian capitals. In comparison, Sydney's rate was 13.7%, while Brisbane and Canberra both stood at 10.7%. The growing adoption of flexible and remote work models, especially with recent support from the Victorian government, may also influence how much space companies like News Corp require in the future.
