The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
5
print
Print
OfficeEditorial DeskThu 31 Jan 19

Solid Demand for Australian Office Space

b1e0d8a3-b9ab-4d66-be71-750fc06de9be

Solid demand in Australia’s office markets will see a strong start to 2019, according to the latest figures from Colliers International.

Up to 424,806sq m of demand across the nation was recorded by Colliers in its fourth quarter Office Demand Index report.

Enquiry levels last year increased by 12 per cent on number and 10 per cent on area in comparison with 2017 full year figures.

A recent report by JLL said the strong demand for prime office space has seen the national vacancy drop to the lowest levels since 2012.

Leading the nation was the Sydney CBD and Melbourne CBD markets with the largest year-on-year increases, with an additional 240 enquiries for almost 160,000sq m in the Sydney CBD last year.

While in the Melbourne CBD, there were an additional 122 inquiries for 164,000sq m of office space.

“Staff attraction and retention and a business’ access to prospective employee pools, continue to be a big driver in terms of location,” the report said.

“Despite scarcity of stock and effective rental growth in both of these locations (Sydney and Melbourne CBD’s) we continued to see a large majority of occupiers remain in the CBD as well as occupiers in fringe and metro locations consider the CBD as part of their search for new premises.”

Nationally demand for office space over 3000sq m and under 1000sq m continues to rise.

Notably, the sub-1,000sq m saw inquiries jump 16 per cent, and 3,000sq m-plus markets increase 13 per cent year-on-year, while the 1,000-2,999sq m market experienced a decline.

Related: Australia’s Office Vacancies Hit Record Lows

The Government sector transacted the most space in 2018, contributing to almost 120,000sq metres.Colliers International

Sydney

Sydney saw a 7 per cent increase in demand for space under 1,000sq m, while demand for space between 1,000-2,999sq m surged 66 per cent, in the fourth quarter of 2018 compared with the same period in 2017.

Melbourne

Demand for office space over 3,000sq m increased by 6 per cent in the Melbourne market Q4 2018 compared to Q4 2017.

“Melbourne was quite stable in terms of the amount of space enquired for in Q4 2018 compared to Q4 2017, with a difference of only 4,000sq m year-on-year,” the report said.

“Again, we saw demand in the mid-market (1,000-2,999sq m) increase 28 per cent in the same period.”

Brisbane

Brisbane experienced an increase in demand by 6 per cent for office space over 3,000sq m.

“In fact, 40,000sq m more office space was transacted in 2018 than 2017 in this market segment. The primary contributor to this was the Suncorp deal at [Mirvac's] 80 Ann Street.”

The Brisbane market saw 31,635sq m of demand recorded in the fourth quarter of 2018.

While markets Perth, Canberra and Adelaide all experienced increases in the total number of inquiries in Q4 2018 compared to Q4 2017.

OfficeAustraliaBrisbaneMelbournePerthdo not useSector
AUTHOR
Editorial Desk
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The property giant’s strategic shift to higher density is in full flight as details of two landmark projects are made pu…
LATEST
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/solid-demand-for-australian-office-space