MEDIA RELEASE
Brisbane office market outstrips nation
Demand for office space in Brisbane’s CBD is at its highest level since 2017, defying bleak predictions for the sector.
The Property Council of Australia’s mid-year Office Market Report released today reinforces the ongoing confidence in Brisbane’s city centre, and a strong appetite for office spaces where staff can come together to collaborate and generate ideas.
Brisbane CBD’s vacancy rate fell from 15.4 per cent in January 2022 to 14.0 per cent in July 2022, with over 44,000 square metres of net absorption over the six-month period.
Queensland Executive Director of the Property Council, Jen Williams, said the figures reveal Brisbane’s office market is thriving, with businesses and leaders understanding the value of Brisbane as a growing city
“Historically, Brisbane’s office market experiences demand of around 9,000 square metres of new space every six months. However, since January this year, we have seen over 44,000 square metres of net absorption, more than four times the historical average,” Ms Williams said.
“In the global war for talent, employers are seeing the physical office as an important feature in attracting and retaining staff. Collaboration spaces, sustainable design and touch-free common areas are just some of the ways the office is adapting to changing market demands.
“The majority of Brisbane CBD’s positive demand (39,600 square metres) was seen in the Premium grade, reinforcing the ongoing flight to quality seen across the office market,” she said.
A drop in vacancy was also recorded in Brisbane fringe markets, with overall vacancy falling by 0.6 per cent, from 16.2 per cent in January to 15.6 per cent in July.
“Over 22,000 square metres of net absorption was experienced in Brisbane’s fringe over the past six months, which shows it is not just the city centre that is benefitting from the strong population and employment growth South East Queensland continues to experience,” Ms Williams said.
“While demand for office space is increasing and the long-term outlook for Brisbane is positive, the actual number of office workers in our city centres remains below pre-pandemic levels.
“As we move forward and new waves of the pandemic come and go, it will be important the ecosystem of the CBD – built on the businesses, restaurants and retailers operating within it – remains top of mind for government policy makers,” she said.
Office vacancies are calculated on whether a lease is in place for office space, not whether the tenant’s employees are occupying the space or working from home.
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