Hobart CBD the tightest in Australia

Hobart has the tightest office market of any capital city in Australia, with vacancies at just 5.1 per cent, according to the latest Office Market Report released by the Property Council of Australia.

Despite the significant impacts of the pandemic, office vacancy in Hobart increased from 4.1 per cent to just 5.1 per cent in the year to January, easily outpacing closest rivals Melbourne CBD (8.2 per cent) and Sydney CBD (8.6 per cent).

Tasmanian Executive Director of the Property Council, Rebecca Ellston, said the numbers were a positive report card on Hobart’s economy.

“To have emerged from 2020 with the tightest office market in the country is a great vote of confidence in the Tasmanian economy and the Hobart CBD,” Ms Ellston said.

“It is a clear demonstration of the resilience of Tasmanian businesses and highlights the importance of the CBD to Hobart’s recovering economy.

“Pleasingly, less than a third of the rise in vacancy was due to reduced demand from tenants – the rest was from new office space entering the market.

“We can expect tight conditions to continue, with very little new office space in the pipeline. Currently, there is only one new building expected to come online in 2021.” Ms Ellston said.

Office vacancies are calculated on whether a lease is in place for office space, not whether the tenant’s employees are occupying the space or working from home.

“Despite these positive numbers, there are still some businesses who are yet to bring their staff back to the office and we urge them to consider doing so.

“There are thousands of retailers and tens of thousands of their employees that rely on office workers being in the city for their custom.

“A return to office will ensure the Hobart CBD continues to play its integral role as a major commercial hub, and further boost the local economy,” concluded Ms Ellston.

Media contact:         Rebecca Ellston |  E [email protected]