2017 Mid-Year Office Market Report
The Property Council’s Mid-2017 Office Market Report breakfast brought 300 guests to the Sofitel on Thursday 3 August to see a range of industry experts provide a comprehensive rundown and analysis of the latest results.
Matthew Miller, Senior Development Manager – Commercial, Urban Regeneration with Lendlease, outlined the results of the latest report.
Vacancy across the Brisbane CBD increased marginally from 15.3% to 15.7% over the last six months, as a result of the ongoing ripple effect of the Government’s move to 1 William Street. Matthew described the impact of shifting government departments on the vacancy data as a “sliding doors moment” – where a small shift at the point of measurement has had a broader consequence on the headline result.
While technically experiencing a minor increase in vacancy, there is continuing demand for CBD space, particularly in the higher grades of stock as tenants seek out newer and more centralised spaces.
A larger drop in tenant demand has influenced the Brisbane Fringe office market, with vacancy increasing from 12.9% to 14.4% over the last six months.
On the Gold Coast, office vacancy decreased from 12.2% to 11.3% over the six months to July, primarily due to 8,867sqm of withdrawals.
Following his presentation, Matthew moderated a panel discussion with Fraser Bentley – Lead Director of Real Estate Advisory Division – Qld with Urbis, Kirsti Simpson, Director – Hassell, and Richard Garing, Head of Office Portfolio – Dexus.
The panel discussed the changing trends in office demand and what that will mean for the South East Queensland markets. Growth in agile workplaces and changing culture were identified as driving forces behind the declining vacancy in prime CBD office space.
The Property Council would like to thank all the speakers for their invaluable insights and Lendlease and Yardi for their generous support of the event.
For a copy of the Mid-2017 Office Market Report click here.
The Property Council has issued press releases analysing the results for the Brisbane and the Gold Coast markets.
Photos from the event can be found on our Facebook page.
Event sponsors:
