Vacancy rates in Brisbane’s CBD have risen from 10.7 percent to 11.3 percent in the 6 months to January 2010, the highest level in 15 years.
The Property Council’s Office Market Report shows that vacancy rates increased across South East Queensland markets: the Brisbane CBD, the Gold Coast and Sunshine Coast.
However the news is not all bad with Property Council Queensland Division Executive Director Steve Greenwood saying that the trends show some positive signs.
“Whilst vacancy rates have increased in the CBD, they are not as high as many projected 6-12 months ago and the rate of increase has certainly slowed," Mr Greenwood said.
“The trend would suggest that we are at or near the bottom of the market."
“Another encouraging sign is that this vacancy increase in Brisbane’s CBD was largely driven by significant supply additions, with net absorption positive over the period."
“An additional 58,289sqm of office space was added to Brisbane’s CBD between July 2009 and January 2010."
“Net absorption was more than triple the 15-year average with 40,940sqm of space taken up over the period."
Key market indicators, Brisbane CBD January 2010
The Brisbane Fringe market also provides some positive news with vacancy remaining unchanged at 11.6 percent.
“The Brisbane Fringe is the only market in South East Queensland to hold steady over the last six months. This is certainly positive news for this market."
“Although vacancy in the Fringe remains at its highest since January 2004, net absorption largely matched new supply."
“In the 6 months to January an additional 19,533sqm of space was added to the Fringe market, with net absorption of 17,067sqm."
“The major challenge confronting the Fringe is the additional 93,890sqm that is due to enter the market in 2010. This represents 9 percent of the current market size, a major influx of new office space."
Key market indicators, Brisbane Fringe January 2010
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Contacts:
Steve Greenwood, QLD Executive Director, 07 3225 3000, 0488 721 156
John Nguyen, National Research Manager, 02 9033 1943, 0410 449 210
