Perth, Brisbane office rent growth for the year to Q1 2012 exceeds Sydney, Adelaide and Canberra, while Melbourne declined, according to Colliers International.
All CBD office markets except Melbourne saw annual rental growth in the 12 months to Q1 2012, according to Colliers International.
Source: Colliers International
“Nationally, our CBD office markets are doing well from a tenant demand perspective, however there is a widening gap between the performance of mining and non-mining states,” Colliers International national director of research, Nerida Conisbee, says.
Simon Hunt, Colliers International managing director of office leasing, says Perth’s 19 percent rental growth was a direct result of a lack of available space.
“It is only a matter of time before we see rents of over $1,000 per sqm net face in Perth’s Premium buildings – over $900 per sqm is already being achieved,” Hunt says.
“Rents in A G-grade buildings are already higher than the asking rents for new buildings on a pre-commitment basis. However, this new supply will not be available until 2014.”
“In Brisbane, rental growth is a result of a vacancy rate that has declined quickly and strong net absorption. Options for tenants seeking prime office space in the CBD are limited and this has resulted in landlords decreasing incentives and face rents increasing in some instances.”
Hunt says Sydney, Adelaide and Canberra are all experiencing strong demand for A- Ggrade buildings.
“The message in Melbourne is that face rents have flattened and incentives are again increasing to stimulate demand and to meet competition from sublease space now coming into the market,” Hunt says.
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