RETURNING TO EVENTS: THE OFFICE MARKET REPORT
The Queensland Property Council kicked off its return to live events with the mid-year Office Market Report at Howard Smith Wharves.
Over 130 property professionals attended the event and another 45 tuned in to the livestream to hear about the latest trends in the office market and discuss the possible ripple effects of COVID-19 on commercial leasing.
An expert panel featured Stephen Conry AM – Chief Executive Officer of JLL for Australia and New Zealand and National President of the Property Council, Matthew Miller – Development Director QLD Lendlease, Andrew Borger – Head of Office Development Charter Hall, and Kirsti Simpson – Principal Workplace and Sector Leader Hassel Studios.
Together the panel had an open and frank discussion about the future of the office market and how it would respond to the impact of COVID-19. Panellists reinforced that Brisbane’s Office Market is underpinned by strong fundamentals and working in the office provides a range of social and collaborative benefits.
Stephen Conry AM predicted that the shift to working from home will be dictated by the length of the pandemic and the extent of government lockdowns. However, predictions of permanent shift to working from home may not eventuate as the negative aspects of working in isolation have not been fully realised and the office environment has a range of proven social and collaborative benefits.
Matthew Miller agreed, stating it was a bold person who bet against cities and that cities have benefited from decades of investment. However, landlords would need to adapt and examine different lease agreements, such as shorter term or more flexible leases, like those which are common overseas.
Andrew Borger talked about how Charter Hall was adapting to the challenges posed by COVID across its extensive office portfolio. The team at Charter Hall was looking into opportunities to improve health and hygiene practices at it rolled out $10 billion of new office space over the next seven years.
Kirsti Simpson believed that the composition of office space would change. There will be a greater concentration on worker experience within a workplace. Office spaces need to be amenity-led to encourage workers to want to engage with their place of work.
Following a broad-ranging discussion, the panel dissected the results of the Property Council’s Office Market Report. Overall results showed that COVID-19 has only had a moderate impact on office markets so far.
A slight uptick in vacancy rates was driven by supply additions and Brisbane’s Office Market was still underpinned by strong tenant demand.
To view the Property Council’s media release on Office Market Report, please click here.
To view more information about Office Market Report series, please visit the Property Council Data Room.
Special thanks to Queensland Office Market Report sponsors Lendlease.
