RESEARCH
THE national flight to quality across the country’s office markets continues apace, with the latest Property Council data showing prime office space vacancies remain lower...
The January edition of the Office Market Report, released twice a year, showed overall CBD vacancy increased from 12.8% to 13.5% nationally over the past six months...
Among the CBD rises were Sydney, from 11.5% to 12.2%, Melbourne, from 14.9% to a long-term high of 16.4%, and Adelaide, which jumped from 17% to 19.3%...
Brisbane and Canberra’s vacancy both inched upwards to 11.7% and 8.3% respectively, while Hobart’s lifted slightly from 2.5% to 2.8%, Darwin’s from 14.3% to 14.4%...
Prime space prospers
The vacancy rate for prime office space across the country was lower than secondary assets in every capital city besides Sydney and Adelaide. The Australian CBD prime vacancy rate...
Property Council chief executive Mike Zorbas said the increase in office supply during 2021 and 2022, far surpassing the historical norm, and continued business moves towards...
“There is a clear divergence between older, low-quality stock and the new premium office buildings rejuvenating our cities.”...
Supply continued to be a driving force behind the CBD vacancy level, with five of the last 10 reporting periods noting higher than historic levels of supply. Supply is also expected to...
“Sydney and Melbourne continue to reflect differences in quality levels – following robust supply additions in recent years.”...
Sublease vacancy increased in the CBD market, with Melbourne, Sydney and Adelaide recording sublease vacancy above their historical averages but decreased in...
Melbourne set for further rise
Ashley Buller, CBRE’s head of office leasing, Victoria, said the firm expects Melbourne’s vacancy figure to rise further in the first half of 2024 when Melbourne Quarter Tower is...
Buller said there was a “noticeable increase” in 2000 sqm-plus tenant activity, reflecting that finally more than three years on from COVID large occupiers have a...
Buller said fringe tenants have been centralising and taking advantage of strong incentives and high-quality existing fit-outs in the Docklands area...
“Looking at the CBD, while overall vacancies have tended to trend higher, the city core has been tightening. That’s driven by the flight to quality, given the CBD hosts over half of...
Perth powers through
Perth, the standout performer – and which has also seen the highest occupancy during and since COVID – saw new enquiry, transaction levels and rental growth in...
Transaction levels were at an all-time with circa 120,500 sqm of new deals recorded over 500 sqm in 2023, nearly 50% above the five-year average, according to CBRE...
Brisbane’s solid performance was helped by a “genuine” increase in demand across multiple industry groups, in addition to major new demand from the state and...
“Despite uncertain economic conditions and the state government moving into ‘caretaker mode’ in 2024, the Brisbane office market is well positioned to exceed expectations...