The Brisbane office market continued to experience strong demand in the six months to July 2012, according to the Property Council of Australia’s latest Office Market Report.
While the headline vacancy rate is 7.9 percent, up from 6.2 percent over six months, this can be attributed to supply additions, Queensland Executive Director of the Property Council of Australia, Kathy Mac Dermott, says.
“The completion of the much-awaited 111 Eagle Street contributed to the 82,737 sqm added during the last six months, the highest supply addition seen in Brisbane in three years,” Ms Mac Dermott says.
“Over this period net absorption was 36,916 sqm, more than two and a half times the 20-year average.”
“This healthy ongoing demand for office space will help to offset the 28,159sqm due to come online at the end of 2012, and the further 21,315sqm expected in 2013.”
“The Fringe market also saw an increase in vacancy rates to 8.5 percent, up from 7.6 percent. However, unlike the CBD, the increase was due to a weakening in demand rather than supply additions.”
“B Grade was the only Fringe sector to see a decrease in vacancy, with a modest drop from 13.4 percent in January to 12.9 percent in July.”
“A total of 7786sqm was added to the Fringe over the six months to July, with a steady stream set to enter the market over the next 18 months.”
“While the headline vacancy rate has increased over the past six months, Brisbane continues to experience strong demand overall in the office market segment.”
For more information visit www.officemarketreport.com.au