Melbourne’s CBD Office Vacancy hits 10 year low
Office market vacancy rates in Melbourne’s CBD have reached a 10 year low and are now the lowest of any Australian CBD, according to the Property Council of Australia’s Office Market Report released today.
The strength of Melbourne’s office market is reflective of Victoria’s strong economy, population growth, liveability and comparatively affordable rents.
Victorian Executive Director (Acting), Matthew Kandelaars, said the overall CBD vacancy rate has dropped from 4.5 per cent to 3.6 per cent over the six months to July 2018.
“Melbourne has experienced the largest decline among Australian CBDs and now boasts the lowest vacancy rate amongst all of Australia’s CBDs,” says Mr Kandelaars.
“The decrease in Melbourne’s office market vacancy rate was fuelled by strong demand and saw a flight to quality, with demand concentrated in the A Grade segment.
“Over the last six months, 59,613sqm of space was added and 33,534sqm was withdrawn.
“To 2020, Melbourne CBD will supply over 450,000sqm of new stock. Pre-commitments for this future stock sit at over 64 per cent.”
Although vacancy rates suggest a strong market, concerns remain about the pipeline of future commercial office supply to meet demand beyond 2020.
“It’s important to look at the policy levers necessary to provide a steady and continued supply of high quality commercial office space,” said Mr Kandelaars.
For a comprehensive range of Australian property industry data visit the Data Room at http://research.propertycouncil.com.au/data-room
Media contact: Matthew Kandelaars | M 0416 443 555 | E [email protected]