Brisbane Office Market Report
Sunday, 20 Nov
A recent Office Market Report released by the Property Council of Australia has shown that the vacancy rate for Brisbane’s CBD has increased by 2 per cent, from 14.9 per cent to 16.9 per cent, over the first half of the year.
Queensland Executive Director of the Property Council, Chris Mountford, is confident in the Brisbane market’s resilience and capability of absorbing much of the new supply.
“While the recent supply additions had a negative impact on the headline vacancy rate, there is positive news for Brisbane, with net demand for CBD space reaching five times it historical average over the same period.”
In addition to this, Mr Mountford said that the fringe office vacancies totals have also increased slightly from 12.7 per cent to 12.9 per cent, which can be directly attributed to negative demand.
“With the ongoing ‘flight to quality’ and historically high levels of sublease vacancies, tenants are seeing an opportunity to move from the fringe into the CBD. Importantly, this CBD demand continues to be in the Prime and A Grade, with lower grades continuing to experience negative demand.”
Owing to this movement in the market, Chris Mountford said that a new report released by the Brisbane City Council, An Open City, has presented revitalisation initiatives for the CBD in an attempt to stimulate the city centre, including opportunities to refurbish older buildings.
“Many of these initiatives have been the catalyst for the redevelopment of underutilised office buildings into student and visitor accommodation, with incentives for retirement living and aged care currently being investigated by BCC.”
For more information on the Brisbane Office Market, visit the Property Council of Australia website.