Office Market Report Breakfast
The Property Council’s 2018 Mid-Year Office Market Report (OMR) breakfast took place on Thursday 2nd August at the Brisbane Exhibition and Convention Centre.
Results confirmed that vacancy rates in Brisbane CBD have dropped from 16.1% in January 2018 to 14.6% in July 2018, the Fringe has seen an increase from 13.8% to 14.5% and Gold Coast vacancy has risen from 10.6 % to 12%
Matthew Miller, keynote speaker at the breakfast and Regional Manager QLD, Commercial for Lendlease, said the positive leasing activity observed over the last six months in Brisbane’s CBD is likely to continue, “In two years we have more than halved the vacancy rate for premium grade buildings, which is a really positive sign.”
Panellists, Mark Curtain, Senior Director of CBRE; Leigh Warner, National Director Research for JLL; and Jennelle Wilson, Partner, Research and Consulting Queensland for Knight Frank, commented on the impact co-working spaces are having on vacancy rates. Panel members emphasised the importance of creating pathways and providing flexible options that suit the needs of tenants.
Second only to Sydney, Brisbane records the highest rates of start-up companies nationwide, explained Leigh. When provided with flexible options, new and innovative companies have the potential to significantly increase net absorption.
Panellists also agreed the recent trend of flight-to-quality would continue, as new additions including, 80 Ann Street, 300 George Street, The Annex and Midtown Precinct enter the market.
Among discussing the major drivers affecting office market space, such as housing affordability and unemployment rates, the panellists found Brisbane maintains the desirable qualities needed to continue to influence inter-state migration and fill office vacancies.
The unpredicted rise in office vacancy on the Gold Coast was largely explained by the relocation of a significant tenant to Robina, with recent positive leasing activity expected to flow through and lead to further reductions in vacancy over the next six months.
The Property Council would like to thank Lendlease for sponsoring this event and Matthew, Mark, Leigh and Jennelle for speaking.
Pictures from the event can be found here