Sydney office demand eases but still positive

Sydney office demand eases, but still positiveSentiment for office take-up in Sydney’s CBD has suffered a hiccup, but the market is still firmly in recovery mode, according to the latest DEXUS Office Demand Barometer.The Barometer, which tracks sentiment for tenant demand in the Sydney CBD, eased slightly to 1.3 per cent for the March quarter, down from 1.7 per cent in the December 2014 quarter. However, actual demand increased over the year’s first quarter.”The Barometer was impacted by a moderation in business confidence in the finance/business/property sectors as well as a small decline in the ANZ job ads series,” says DEXUS general manager of Research, Peter Studley.”[The] Sydney CBD office market is clearly in a recovery phase as actual demand continues to increase.”Last year, the Barometer indicated there would be a strengthening in tenant demand and we have now had more than 12 months of solid growth in office space take-up.”Studley says recent leasing activity has been driven by the technology, business services and education sectors.The DEXUS Office Demand Barometer tracks five variables based on their high correlation with Sydney CBD office demand, including the S&P/ASX 200 Index, the NAB Business Confidence Index (finance/business/property sectors), the ANZ job advertisement series, the US ISM Manufacturing Index and short-term business travel departures.To read the DEXUS Office Demand Barometer click here.