A mining and resources slowdown has subdued Brisbane's metropolitan office market, with transaction volumes over the first half 2012 down on the previous six months, weaker tenant demand and negative absorption for the first time since July 2009, according to Colliers International.
The Brisbane metropolitan office market has slowed over the first half of this year, according to Colliers International. The slowdown follows a period of rapid growth over the past five years, which culminated in the vacancy rate reaching its lowest level in two and a half years at the end of 2011, Colliers says.
Warwick Wolfe, Colliers International director of office leasing, says a slowdown in the mining and resources sector has flowed through to the Brisbane metropolitan office market.
“Technical services and other sectors associated with the energy and resource industries have driven growth in the fringe market over the past five years, so it comes as no surprise that a potential slowdown in mining is having some impact on the office market,” Wolfe says.
“But it is too early to tell whether a slowdown will eventuate, and therefore the longer-term impact on the office market cannot be determined.”
Transaction volume over the period was recorded at $206 million. This is less than half of the second half of 2011 volume, the highest on record, which was $545.289 million.
Colliers also reports weaker tenant demand over first half of the year, and negative absorption for the first time since July 2009.
According to Colliers, the vacancy rate is expected to remain stable in the short-term. But significant new supply in the pipeline for the second half of 2013/into 2014 could place upward pressure on the vacancy rate.