Demand for office space has lifted by an average of 1 per cent across Australia’s CBDs and 0.7 per cent in non-CBD markets, according to the latest Office Market Report.
Office vacancy rates in Melbourne and Brisbane have both increased, to 11.9 per cent and 15.4 per cent respectively, but are expected to fall later in 2022. Sydney’s vacancy rate is at 9.3% while Hobart and Canberra are lower than historical averages.
Every capital city, bar Sydney and Brisbane, recorded demand increases higher than their historical average.
Ken Morrison, the Property Council’s chief executive, said the figures were “striking” and illustrated the strength of the office.
“While aggregate vacancy levels have risen slightly from 11.9 per cent to 12.1 per cent, the driver of this has been new supply of office space, not a drop in demand,” Morrison said.
Most CBD businesses continue to see the office as integral to their future, Morrison noted. “The data matches what we’re hearing, and that is that tenants clearly see collaborative and well-designed office space as a key component of their ‘new normal’ of working.”
- View the snapshot of the January 2022 Office Market Report.
- Read the Australian Financial Review’s analysis: Demand for CBD offices looks past flexible work trend
- Read Commercial Real Estate’s reporting: Demand for office space to bounce back in 2022