Construction has begun on Atlassian’s $1.4-billion headquarters after the New South Wales government, Dexus and the global software giant reached agreement on the project.

The 39-storey Atlassian Central, next door to Central Station in Sydney’s future tech precinct, is expected to open in 2027.

Minister for enterprise, investment and trade Alister Henskens said the government was excited to kick off construction on the award-winning concept, which incorporates a hybrid timber design and will be the tallest of its kind in the world.

“We are incredibly proud to see Atlassian’s Australian HQ come to life at Tech Central, progressing our goal of delivering the world’s most sustainable, inclusive and creative innovation precinct,” Henskens said.

Atlassian, which will become the building’s anchor tenant, will be joined by other tech heavyweights Afterpay, Canva, ROKT and Safety Culture in supporting the activation of the Tech Central precinct.

The development will provide 20 per cent of the 25,000 additional innovation jobs target, and more than 20 per cent of the 250,000sq m of space for technology companies across the precinct.

▲ The 39-storey Atlassian Central is expected to open in 2027.

“This iconic building will play a vital role in supporting NSW talent attraction and retention efforts and become a beacon for the technology industry,” Henskens said.

“In a fierce global skills market, on its completion the building will boost our market competitiveness and welcome 5000 future technology and supporting industry jobs, in addition to creating over 800 construction jobs.”

Dexus, which counts a property portfolio valued at about $45.3 billion, reached agreement with Atlassian to fund, develop and invest in the 75,000sq-m building.

Dexus chief executive Darren Steinberg said it was a significant milestone in Dexus’s partnership with Atlassian to deliver its Australian headquarters.

“The world’s greatest city-shaping precincts are achieved through collaborative partnerships. This is a unique opportunity for Dexus and Atlassian to create a global leading workplace that challenges the status quo, with new benchmarks in sustainability and smart buildings,” Steinberg said.

Atlassian co-chief executive Scott Farquhar said the company was adapting to a new way of working since Covid-19, with the new office to play a unique role as the company reimagines traditional office spaces and how work gets done.

▲ Atlassian’s Scott Farquhar said the new office will be a part of how the company reimagines traditional office spaces.

"We’ve been involved in the Tech Central vision from day one,” he said.

“Atlassian is built on bright ideas, strong values and great teamwork, and we can’t wait to see this come to life in Atlassian Central.”

The plans by ShoP Architects and BVN show an “expansive” lobby, retail and dinning on the ground floors, while levels one to six would house the backpacker accommodation operator YHA Australia. The current YHA building will be refurbished as part of the building’s entrance.

“At YHA, we pride ourselves on providing spaces that facilitate social connection, discovery and creativity,” YHA chief executive Paul McGrath said.

“Digital nomads in Australia are continuing to increase and are positioned in the heart of Atlassian’s building, creating a unique and sustainable space that aligns with not only the needs of the modern traveller but also our values.” 

Enticing workers to return to the office remains a challenge, with employers told they have to work harder to get younger staff to come back.

According to data released by multi-national construction giant Lendlease in a collaboration with Leesman— who measure and analyse employees in the workplace—newer and younger workers do not want to go back to the office, and in some cases, do not want to engage at all.

Lendlease head of customer strategy Alison Webb said there was a clear correlation between age and the likelihood of someone wanting to work from home.

Forty-five percent of workers under 25 years preferred to work from home with 43 per cent happy with some form of hybrid work practice. Only 12 per cent want to return to the office.

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