Brisbane office market steady
The office vacancy rate in Brisbane has remained steady over the last six months as the market prepares for the long expected influx of supply in 2016.
The Property Council of Australia’s latest Office Market Report, released today, found vacancy rates in the CBD remained steady at 14.9 per cent in the 6 months to January 2016. Vacancy rates in Brisbane’s fringe declined slightly from 12.6 to 12.5 per cent over the same period.
“Although the CBD office vacancy is down slightly from the record high of 15.5 per cent last January, there will be a significant increase in supply in 2016 with a lot of new space coming online,” Queensland Executive Director of the Property Council, Chris Mountford, said.
The influx of new CBD office space is expected to exceed 190,000 sqm in 2016, with 180 Brisbane, 480 Queen Street and 1 William Street all coming onto the market.
A total of 22,000 sqm in new office space is also expected in Brisbane’s fringe.
“Whether in Brisbane’s CBD or fringe office markets, A-Grade space was the only section of the market experiencing positive demand over the last six months.”
Incentives introduced by Brisbane City Council have already been the catalyst for the redevelopment of some older office buildings into student and visitor accommodation.
“Over the last six months declining demand for office space across Brisbane was offset by the withdrawal of space from the market, demonstrating the drive for the adaptive reuse of older buildings is already underway,” Mr Mountford said.
Media contact: Chris Mountford | M 0408 469 734 | E [email protected]
Analysis – BRISBANE CBD MARKET
- Brisbane CBD vacancy remained steady at 14.9 per cent in the 6 months to January 2016
- Demand was negative but was offset by withdrawals
- There is a significant amount of space due to come online over the next year
- Brisbane CBD’s vacancy rate remained at 14.9 per cent
- Negative demand was offset by withdrawals
- Net absorption was -1,323sqm
- Withdrawals totalled 3,750sqm while there were 2,800sqm of supply additions
- Only the A Grade segment recorded significant positive demand
- A total of 192,281sqm is due to enter the market in 2016
- 18,450sqm is planned for 2017
- 82,700sqm of space is mooted
Key market indicators, Brisbane CBD (aggregate)