Queensland Office Market Report Breakfast

Office Market Report BreakfastThe Property Council released its 2017 January Office Market Report at the first industry breakfast of the year on Thursday, 2 February.Despite the addition of 1 William Street, the Brisbane CBD vacancy rate dropped from 16.9 per cent to 15.3 per cent in the 6 months to January 2017. A similar result was achieved in Brisbane’s fringe, with the vacancy rate declining slightly from 12.9 to 12.6 per cent over the same period.The Brisbane result can be attributed to both withdrawals and new demand – which is now sitting five times higher than historical levels.On the Gold Coast, office vacancy continued its recent decline, falling by 2.1 per cent over the last six months, dropping to 12.2 per cent. While on the Sunshine Coast, vacancy decreased by 2.3 per cent over the last twelve months, dropping to 6.9 per cent.Fraser Bentley, Director – Urbis, provided the keynote presentation outlining the results across the markets and grades. Fraser illustrated that the emergence of the Queens Wharf development will have a significant impact on the composition of the CBD, and be the driving force behind future demand.Following breakfast, Christine O’Hara – General Manager Brisbane CBD Portfolio – Investa Office, moderated a panel discussion with Fraser and the following sector analysts:Ben McGrath, Managing Director – Knight FrankCarol Hodgson, Director, Strategic Research, Australia, JLLMatt Kearney, National Director, Office Leasing, Colliers InternationalCarol Hodgson suggested that the results reflect growth in the state public service, and while there are green shoots in the Queensland economy, tenant demand is not expected to continue at such high levels.Matt Kearney pointed to the ‘flight to quality’ as a key catalyst of activity in the leasing space over the course of 2016, with significant new additions to the CBD market. Lower grades of CBD space have become increasingly accessible for smaller businesses, which has not traditionally been the case.Ben McGrath outlined that investor interest in Brisbane is being driven by the lack of accessibility to the Melbourne and Sydney markets. To support this trend and capitalise on the gap in affordability, Ben suggested that the State Government should do more to encourage southern businesses to relocate to Queensland.The Property Council would like to thank the speakers for sharing their market insights.The Property Council’s press releases for Brisbane, the Gold Coast and the Sunshine Coast can be viewed here. A copy of the 2017 Office Market Report can be purchased here.Photos from the event can be viewed here.