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Mid-Year Office Market Report Breakfast

  • August 04, 2016

Mid-Year Office Market Report Breakfast

The Property Council released its 2016 Mid-Year Office Market Report at a sold-out industry breakfast on Thursday, 4 August.

With 115,000sqm of new office space coming online over the past six months, Brisbane’s CBD vacancy rate has increased from 14.9 per cent to 16.9 per cent. Brisbane’s fringe has held relatively steady over the same period, with a slight increase in vacancy from 12.7 to 12.9 per cent.

On the Gold Coast, office vacancy increased by 1.1 per cent, the majority of which can be attributed to a single sublease vacancy in Robina.

Fraser Bentley, Director – Urbis, provided the keynote address at the breakfast, outlining the take-outs for industry from the mid-year data. While the vacancy levels have fallen, Fraser outlined that the sector has demonstrated more confidence and resilience than previous expected.

Of particular note in the results was a decrease in vacancy in Brisbane CBD B-grade stock. Fraser put this result down to solid growth in the Small and Medium Enterprise section of the economy. 

Following breakfast, Christine O’Hara – General Manager Brisbane CBD Portfolio – Investa Office, moderated a panel discussion with Fraser and the following sector analysts:

  • Peter Dodd, Director – Office Leasing, Savills
  • Dominic Brown, Head of Australia and New Zealand Research, Cushman & Wakefield
  • Stephen McNabb, Head of Research – Australia, CBRE

Peter Dodd outlined recent shifts in market dynamics which have enabled the CBD fringe to become a desirable location for many larger tenants, while at the same time, smaller businesses are returning to the CBD for the increased amenity.

Dominic Brown illustrated that Brisbane’s net absorption figures were healthy and that the data is generally better than expected. Dominic outlined that while growth in traditional CBD employment sectors was mild, it was sustained and is a strong indicator that the worst of Queensland’s market conditions are now behind us.

Stephen McNabb provided an overview of the future prospects for Queensland’s markets. While Stephen outlined that there will not be a repeat of the mining boom market conditions, future growth is likely to be more mild and driven by population increases and inner city infrastructure projects.
The Property Council would like to thank the speakers for sharing their market insights and Turner & Townsend for their sponsorship of the event.
 

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