The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
7
print
Print
OfficeDinah Lewis BoucherThu 06 Feb 20

Lack of Brisbane Office Supply ‘Opportunity’ for Landlords

3251df09-3720-4dc8-ad71-96da592ce7c4

Despite the historically strong demand for new office space in Brisbane, vacancy rates in Brisbane’s CBD increased from 11.9 per cent to 12.7 per cent during the last six months, according to the latest Property Council office market report.

The completion of Shayher Group's 300 George Street building added 47,700sq m—about 2.4 per cent of current stock—to the CBD market in late 2019.

Property Council Queensland director Chris Mountford said that the underlying demand in Brisbane is a positive sign for the city’s economy.

“High tenant demand has seen 23,581sq m absorbed over the past six months—a great indicator of healthy activity in the office sector,” Mountford said.

“With an additional 55,000sqm of space due to come online over the next two years, the market will be hoping for a continuation of this strong tenant demand for quality Brisbane CBD properties.”

▲ Following completion of The Annex at 12 Creek Street later this month, there will be an 18-month hiatus in new Brisbane CBD office supply.


CBRE office leasing state director Chris Butters said despite patchy demand, Brisbane’s prime office market is tightening.

“We’ve certainly seen some improvement from the resource sector, with the co-working sector also emerging as a significant net absorber of space last year,” Butters said.

A lack of new supply under construction is also set to present an opportunity for landlords on completion of The Annex, a 7000sq m boutique building at 12 Creek Street later this month.

“Following this, there will be no new supply until the completion of the Midtown Centre in mid-2021 and this 18-month hiatus will help put downward pressure on vacancy rates,” Butters said.

As anticipated at the end of last year, 2020 is expected to continue the positive net absorption trend experienced in Brisbane, according to Savills office leasing state director David Howson.

“The prime sector continues to be the shining light with A-grade vacancy expected to continue to tighten for the foreseeable future,” Howson said.

“The continued investment in south-east Queensland infrastructure by the state government, is likely to provide significant impetus to the local market with the State Government themselves tipped to add significantly to net take-up.”

Brisbane CBD Net Absorption by Grade

^ Six months to January 2020: 'Flight to quality' evident with prime stock recording strong net absorption and secondary stock recording negative net absorption (Source: Property Council of Australia 2020 OMR).

The Property Council’s report shows the Brisbane fringe market’s vacancy decreased marginally over the last six months of 2019, falling from 13.8 per cent to 13.7 per cent.

Withdrawal of space in Brisbane’s fringe for redevelopment has been the primary cause of this vacancy reduction, with tenant demand negative in all grades except for A-grade stock.

“Almost 80,000sq m of new office space is expected to come online in the Brisbane fringe over the next few years,” Mountford said.

“We’re seeing a definite ‘flight to quality’ both in the Brisbane CBD and Brisbane Fringe markets, this will open up great redevelopment and repositioning opportunities in 2020 for older assets.”

OfficeInfrastructureAustraliaReal EstateSector
AUTHOR
Dinah Lewis Boucher
More articles by this author
ADVERTISEMENT
TOP STORIES
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
Medium Density housing in NSW
Exclusive

NSW Budget ‘Groundbreaking’ $1bn Guarantee to Unlock Housing

Leon Della Bosca
7 Min
View All >
Residential

National Home Prices End Year on Record High

Lindsay Saunders
Lincoln Place Eagle Point Bowls Club and Clubhouse
Land Lease Communities

Lincoln Place Plots 209-Home Scheme on Gippsland Purchase

Leon Della Bosca
Linic Property Group Saunton Jindalee
Residential

Linic Group Moves 43-Unit Jindalee Scheme Ahead

Leon Della Bosca
The five-storey $26-million project 200m from Indian Ocean promises “new benchmark in coastal living” …
LATEST
Residential

National Home Prices End Year on Record High

Lindsay Saunders
3 Min
Lincoln Place Eagle Point Bowls Club and Clubhouse
Land Lease Communities

Lincoln Place Plots 209-Home Scheme on Gippsland Purchase

Leon Della Bosca
3 Min
Linic Property Group Saunton Jindalee
Residential

Linic Group Moves 43-Unit Jindalee Scheme Ahead

Leon Della Bosca
3 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/office-market-vacancy-rates-brisbane