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.
In fact Melbourne (the vacancy rate of just 6.5%) is already showing signs of that occurring.
As you could see from the table above, the changes in demand for CBD Office space taking place over the past 12 months were …
Sadly, Brisbane and Perth have tended to trail the other capital cities. Even so, they did enjoy several pre-commitments over the 12-month period.
Re-capping: It will take until about 2014 for CBD Office rentals to reach a sufficient level to justify developers re-entering the market, with any speculative projects.
And our expectation is for the Office market to peak sometime in 2018.
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