The Queensland office market experienced a drop in vacancy rates in the final half of 2016 thanks to healthy demand for office space across the state's major market areas.
This was revealed by the Property Council of Australia’s latest Office Market Report, which was released today.
The report shows vacancy across the CBD dropped from 16.9% to 15.3% over the last six months, despite the addition of developments like 1 William Street to the Brisbane skyline.
“The improvement in the vacancy rate is welcome and reflects the best improvement in any CBD vacancy rate across Australia – however, Brisbane is still in the bottom half of the pack when it comes to CBD vacancy rates,” Property Council QLD Executive Director Chris Mountford said.
“While there has been some office buildings withdrawn from the market for redevelopment, new demand is also playing a big role in bringing down the vacancy rate.
“Demand for office space in the Brisbane CBD is now more than five times higher than historical levels.”
Positive demand has not been limited to the CBD, with the Brisbane Fringe market experiencing a similar demand-driven drop in vacancy from 12.9 to 12.6 per cent.
The Sunshine Coast and Gold Coast office markets also recorded some of the sharpest declines in vacancy across Australia, with the two cities now sitting at 6.9 and 12.2 percent office vacancy respectively.
“While it is positive to see demand and withdrawals keeping pace with new supply over 2016, Queensland is still experiencing historically high office vacancy,” Mr Mountford said.
“In this critical election year, it is imperative that the State Government work to boost business confidence to invest and create jobs in Queensland.”