The Brisbane office market experienced a softening of demand in the six months to January 2002, with the total market vacancy rate increasing to 7.34% from 6.38% at July 2001, according to the Property Council of Australia’s Office Market Report released today.
The report points to softening conditions for Brisbane’s commercial property sector across all grades of office stock, except category D (sub-lease vacancy). The greatest increase was felt in the premium grades where vacancies increased to 10.2% from 4.3% at July last.
The 7.34% vacancy rate in the six months to January this year compares with 7.16% in January last year.
Softening in the net take up of office space of –4,428 sqm is driving the drop in vacancies. This negative audited net absorption result compares with 14,533 sqm over the six months to July 2001 and 53,338 sq m during the six months to January 2001.
Brisbane has seen 14,800 sqm of new or refurbished office space enter the market since July last year.
Outside the CBD, the Brisbane “near city” market recorded a 12.83% vacancy rate compared to 11.88% the previous six months and 12.02% at the same time last year.
The Gold Coast office market also saw vacancy rates rise in the six months to January 2002, with the total vacancy factor coming in at 11.23% compared with 8.52% in the six months to July 2001.