A decrease in CBD office market demand is expected to push up vacancy rates in many capital cities across Australia, according to CBRE.
CBRE’s Australian office market ViewPoint report says lower levels of demand are occurring across the board.
In Sydney the market remains balanced in the short-term.
“Barangaroo remains the key issue, with a significant boost in demand from the current trajectory required to fill resulting backfill CBD space,” the report says.
In Victoria buildings completing in Docklands will pull tenants away from the CBD, according to CBRE, and consequently push up vacancy in 2013 and 2014.
The viewpoint says in Brisbane and Perth disparities occur with economic and jobs growth. In Brisbane there is a degree of regionalisation for jobs growth, whereas Perth is benefitting from mining and engineering construction activity.
“Activity in the engineering pipeline is expected to keep economic growth strong over the next three years at least, which should keep office market conditions tight with vacancy well below long term averages,” the report says.
Adelaide and Canberra are expected to see weaker levels of demand. In Adelaide, a near-term strong supply pipeline is tipped to see vacancy rates increase.
Meanwhile in Canberra, an expected reduction in demand from the public service is anticipated to result in a higher vacancy rate.