Sydney CBD office demand in growth phase

Sydney CBD office demand in growth phaseThe DEXUS Office Demand Barometer rose from 1.5 per cent to 1.9 per cent during the September quarter, indicating that Sydney CBD office demand has entered its growth phase.The barometer, which follows conditions that determine the level of demand for Sydney CBD office space, increased for the sixth consecutive time in the September quarter. It suggests that leasing conditions in the Sydney CBD are continuing to improve.According to Peter Studley, DEXUS general manager of research, net absorption in the Sydney CBD over the past six months has reached its highest level since September 2011.”Over the past six months, approximately 37,000 sqm of office space was absorbed in the Sydney CBD, driven by smaller firms in the service and IT sectors satisfying their expansion needs,” he said.”The main contributor to the September quarter result was the ANZ job advertisement series, which lifted by 2.1 per cent. This was despite the minor fall in overall business confidence,” he added.Performance of the barometer was also impacted slightly by the volatility of the share market, with the S&P/ASX 200 Index recording a weak result over the quarter.The Barometer supports positive net absorption of Sydney CBD office space over the next six months.Find more on the latest DEXUS Office Demand Barometer here