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Australia, Office Leasing Insights, Q2 2014

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Find out what’s happening in the Australian office leasing market: www.jll.com.au/office-markets

The JLL Office Leasing team has just released Q2 commentaries and statistics, across 12 key office markets.

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Australia, Office Leasing Insights, Q2 2014

  1. 1. Office Leasing Insights, Australia Q2 2014 update
  2. 2. Office Leasing Insights, Australia What happened in Q2 ? The national CBD office market vacancy rate increased to 12.2% However, lead indicators for office sector demand have improved over the first half of 2014 Business confidence Job advertisements Equity market Office Leasing Insights, Australia
  3. 3. Office Leasing Insights, Australia CBD Office Vacancy Rates Q2 2014 14.81% 16.51% 13.20% 11.13% 12.69% 9.94% Adelaide Brisbane Canberra Melbourne Perth Sydney
  4. 4. Office Leasing Insights, Australia CBD Office markets net absorption 2013/14 Financial Year The fragmented nature of CBD office markets is proving to be a tale of two tiers
  5. 5. Office Leasing Insights, Australia Sydney and Melbourne both recorded positive net absorption There have been significant tenant contractions in secondary stock By contrast, Brisbane and Perth both recorded negative net absorption A tale of two tiers Businesses are using favourable conditions to move into CBD markets
  6. 6. Office Leasing Insights, Australia Looking forward Professional services and technology-related firms are Leasing activity is Over next 3 years, up to In particular assets with over the 2014/15 financial year expected to improve showing signs of expansion could potentially be withdrawn from national CBD office markets. 5% of office stock potential. residential conversion
  7. 7. Office Leasing Insights, Australia Sydney “Business conditions are improving within the finance and insurance sectors on the back of broader economic positivity across New South Wales.” Tim O’Connor Head of Office Leasing NSW & Australia VACANCY RATE Decreased to 9.94% QUARTERLY NET ABSORPTION Positive: 21,818sqm SYDNEY
  8. 8. Office Leasing Insights, Australia MELBOURNE Melbourne “Leasing demand has improved with many city fringe tenants prepared to seriously assess and ultimately relocate to the CBD” Stuart Colquhoun Head of Office Leasing, VIC VACANCY RATE Increased to 11.1% QUARTERLY NET ABSORPTION Positive: 11,100sqm
  9. 9. Office Leasing Insights, Australia BRISBANE Brisbane “The road to a stable, balanced vacancy will be reliant on a significant amount of secondary stock being withdrawn between now and 2016.” Mark Curtain Head of Office Leasing, QLD VACANCY RATE Increased to 16.5% QUARTERLY NET ABSORPTION Negative: 21,200sqm
  10. 10. Office Leasing Insights, Australia ADELAIDE Adelaide “Lease negotiations are still challenging, but it now seems the biggest hurdle to overcome is the abundance of options available to tenants rather than a reluctance to relocate.” Tom Budarick Head of Office Leasing, SA VACANCY RATE Increased to 14.81% QUARTERLY NET ABSORPTION Negative: 3,986sqm
  11. 11. Office Leasing Insights, Australia CANBERRA Canberra “Private sector tenants have been the main driver of leasing activity in 2014, as outsourcing opportunities within the Government start to increase.” Andrew Balzanelli Managing Director, ACT VACANCY RATE Increased to 13.2% QUARTERLY NET ABSORPTION Negative: 26,559sqm
  12. 12. Office Leasing Insights, Australia PERTH Perth “Rents will remain under downward pressure over the second half of 2014, with incentives facing upward pressure.” Nick Van Helden Head of Office Leasing, WA VACANCY RATE Increased to 12.7% QUARTERLY NET ABSORPTION Negative: 13,800sqm
  13. 13. Office Leasing Insights, Australia Want to know more? For a full national update visit www.jll.com.au/officemarkets

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