RESEARCH
AUSTRALIA’S major CBD office markets are expected to face many of the same headwinds in the new year as in 2023, with potential for a more optimistic second half...
According to the latest Investa Inside: Office Market Outlook, while inflation and interest rates have dominated Australian and global macroeconomic conditions in 2023, 2024 is...
The country’s economy and business sector is still grappling with the underlying softness of office-based business confidence, while business conditions have...
Investa predicts Australia’s major capital city office markets will have a year of two halves in 2024, with economic conditions set to stabilise and improved leasing market activity in...
“Greater stability in economic and market conditions through 2024 is likely to support a shift in both leasing and capital market activity, setting up a more positive outlook for...
This should push a moderate prime market-led recovery throughout the second half, with stronger leasing activity in high quality and well-located CBD office buildings...
“Investa’s Office Rental Affordability Index shows Australian CBD prime office rent is at its most affordable level in the past 20 years,” added Cannington...
At the same time, secondary market conditions should remain soft in the new year, with lower grade buildings are expected to continue to struggle with meeting tenant workplace requirements in...
Tenants have witnessed significant variation in office occupancy rates across the workweek with peak office attendance typically found in the middle of the workweek...
With occupancy lower on Mondays and typically the lowest on Fridays in the range of 40-50% of pre-pandemic capacity...
“2024 is likely to see more stable office occupancy as businesses progress further towards a hybrid work steady state, providing fundamental support for leasing demand growth.”...
Office development will likely remain challenged throughout the new year, with construction supply chains constraints, creating delays and uncertainty with construction timelines...
Meanwhile, lease demand for new office projects across Australia’s CBD office markets remains solid, with circa 155,000sqm of pre-commitment in 2023 to date...
With the new office supply outlook highest in the Sydney CBD, with circa 170,000sqm of new and fully refurbished stock to be completed in 2024, it also shares the...
While the outlook for Melbourne CBD new office supply is more limited with circa 110,000sqm new and refurbished office supply to be completed in 2024 and just 25,000sqm...