The Truth Behind Falling Office Workspace Ratios

THE QUESTION IS: Have the major corporate tenants been "sold a pup"? Or have their Financial Controllers merely been focusing upon cost savings, rather than employee productivity?

Why not watch this short video and then, make up your own mind?

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Commercial Property: What Makes for a Balanced Office Market?

EVERY capital city has both a CBD and suburban Office market. And as you can appreciate, keeping tabs on all the various suburban markets is almost an impossible task for most investors.

But generally speaking, the health (or otherwise) of the CBD Office markets within each capital city will provide you with a fairly good gauge of the overall Office scene around Australia.

Accordingly, this graph will provide you with a clear picture of what has occurred over the past 4 years.

As a rule of thumb, Office markets are said to the “in balance”, when their Vacancy Rate lies between 5% and 7%. [Read more…]

Lack of Construction Underpins
Demand for Office Space

Available Full CBD Office Floors are quickly vanishingThe Commercial property market is driven mainly by supply and demand — especially Offices.

And therefore, with …

  • falling vacancies,
  • positive net absorption and
  • few new projects in the pipeline …

… this means a looming shortage of Office space around Australia — with rentals poised to rise sharply. [Read more…]

“Where You Live Should NOT
Dictate Where You Actually Invest!”

Always consider the emerging trendsWherever you live, you tend to believe (and will happily tell people) that it is undoubtedly the best place to live.

Really, it’s just human nature.

But when it comes to investing your hard-earned dollars into Commercial property … your decisions should be governed by something more than a warm and fuzzy feeling.

For the past four or five years, Victoria has led the nation in economic growth; and it is one of the few enjoying a net growth in migration from other states.

Employment Growth shows some interesting trendsFurthermore, the latest ABS figures now confirm Victoria’s continued growth and job creation — leading all-comers over the past 12 months.

And you’ll also notice most of the various service sectors are currently outstripping the mining sector, as far as employment numbers are concerned. [Read more…]

Office Leasing the Stand-out Performer

OfficeTake-up
Office leasing activity picked up in most capital cities around Australia, over the past year. In some instances, quite significantly.

And with the supply side basically “on hold”, you should soon start to see this translate into some solid rental increases.
[Read more…]

Melbourne Leads the Office Market

Savills International has just released a report on the current level of Office supply within the Melbourne CBD.

 Melbourne CBD Office Vacancies

Melbourne CBD Office Vacancies

Strong demand has seen the number of floors of Prime space within the CBD fall from 60 at the end of January this year, down to 42 at present — a decline of some 30%.

The amount of Secondary Office space has also fallen from 108 floors to 89, over the same period.

And underpinning all of this is the level of enquiry, which has jumped by 300% over the last six months.

Can You Afford to Miss Out?

The other day, we took a look at Commercial property cycles, and where the various Australian CBD office markets might sit.

Currently, Melbourne seems to be “leading the pack”. But you might be interested to explore exactly why that is.

Melbourne Office Market

Melbourne Office Market


Some recent research by Jones Lang LaSalle indicates that Melbourne’s Office vacancy is likely to fall to around 5.4% by 2013.

Several pundits are suggesting it could be even lower.

h3. And the reason why?
[Read more…]

CBD Offices on the Move

Westpac has just released an Australia-wide outlook for Commercial property. And it predicts you will start to see growth in rents and values during 2010-11.

Two Cities

Two Cities

As employment numbers grow with the improved economy, demand for Office space will also take off again.
[Read more…]

Which Australian Office Markets are in Trouble?

Queensland seems to have been hardest hit. And in particular the Gold Coast, where vacancy levels have soared to around 18%.

But the difficulties confronting Queensland (and fellow mining State WA) are not necessarily reflected Australia-wide.
[Read more…]