The Brisbane CBD vacancy rate has decreased slightly to 15% in the six months to July 2015, down from 15.5% in January, according to the Property Council of Australia's latest Office Market Report.
Commenting on the report, Colliers International National Director of Office Leasing Mark McCann said the Brisbane office market had stabilised in the first half of 2015 with both transaction volumes and enquiry up from the previous year.
“The overall vacancy rate is set to decrease slightly for this period and is a result of stock withdrawals for conversions and some positive take-up through leasing activity," Mr McCann said.
"This positive change in the vacancy rate, however, is only temporary, with the overall vacancy expected to spike from 2016 onwards after completion of new developments and associated backfill.
Mr McCann said the secondary market continued to be the most volatile sector in the market due to its historically high vacancy rate, however, recent transactional activity in this sector has steadied the competitive parameters required to secure tenants.
"The IT, education and training sectors have been the largest generators of new tenant demand in the Brisbane CBD for this period," Mr McCann said.
“The prime market vacancy on the other hand has stabilised and this will continue for the balance of 2015. Business confidence is returning with a positive indicator being the reduction of sublease space as a result of anticipated business growth.
“The new development cycle is upon us with construction and completion of 180 Brisbane, 480 Queen Street and 1 William Street all due within the next 12 months.”
The Property Market Office Report is released every six months. It is based upon a comprehensive inventory of all useable office space in over 25 office markets across Australia.
The report database includes details of building names, completion dates, quality grades, net lettable areas (NLA), ownership, and building vacancy on a direct and sublease basis.