OFFICE MARKET RESULTS RELEASED
More than 250 Queensland property professionals attended the Property Council’s 2020 Office Market Report launch, held at Sofitel Brisbane Central.
The launch featured an expert panel that dissected the underlying factors of the commercial property climate. The panel was facilitated by Lendlease Development Director Matthew Miller and featured Urbis Director Ben Lyons, Savills Head of Research Phil Montgomerie and Hassell Principal Kirsti Simpson.
Over the course of the session the panel discussed the result of the first Office Market Report of the year. The report highlighted the positive demand for CBD office space in Brisbane, despite an uptick in vacancy rates from 11.9 percent in July 2019 to 12.7 percent in January 2020. This increase in vacancy was caused primarily by supply additions, such as the new office tower at 300 George Street.
Supply of new office space and the demand drivers featured heavily throughout the panel’s discussion. Phil outlined that while interest rates remained low and returns of around 10 percent were being achieved, developer appetite would remain strong. However, securing tenants and meeting lending criteria would curtail a dramatic increase in supply.
Kirsti Simpson spoke about the drivers for tenant demand and how this is shaping built form outcomes as well as the attractiveness of fringe locations that have good access to transport and strong cultural connections.
Urbis’ recent move to 300 George Street is an example of a specific tenant’s requirement which includes an outdoor balcony. Ben Lyons spoke about the move and the difficulties in finding contiguous space in the CBD to meet their requirements.
This led to a conversation about the future capacity of the CBD with Ben providing some insights from Urbis’ Brisbane CBD of the Future report, recently prepared for the Property Council of Australia.
The panel also discussed and analysed the office market results for the Brisbane Fringe, Gold Coast, Sunshine Coast and other capital cities.
The Property Council would like to thank all guest speakers and JLL Director of Research Leigh Warner, Chair of the Property Council’s Commercial Office Committee for being a part of the event.
In addition to discussing the commercial office climate, the event provided the opportunity to raise funds for bushfire reconstruction. Attendees at the event were encouraged to donate to BizRebuild, the community rebuilding initiative chaired by former Governor-General Sir Peter Cosgrove.
To view photos taken at the Queensland Property Council’s Office Market Report launch, please visit the Property Council’s Facebook page.
To view the Office Market Report data series, please visit the Property Council Data Room.
To view the Property Council’s media releases on the report’s results for Brisbane, the Gold Coast, and the Sunshine Coast, please click the links provided.
Special thanks to our event sponsor, Lendlease.