The recent boom in inner-city residential activity has had a positive effect on the Brisbane CBD office market, according to the latest research.
As revealed in the last edition of NewsinBrief, demand for inner-city living has scaled to new heights, with several new proposals already in the advanced planning stages. However, new research by PRD Realty suggests that in addition to the surge in apartment developments and proposals, commercial office developments are now earmarked for residential unit development despite the CBD office vacancy being at its lowest levels for 20 years.
Approximately 45,000 square metres of new residential space is to be added this financial year, of which 30,000 square metres is already pre-committed.
It is a trend, according to PRD, that will help control future vacancy rates in the office market sector, with proposed office development rates over the next three or four years forcing vacancy rates to remain relatively stable at around 5-5.5 %.
Vacancy rates could drop even further if net absorption of office space is maintained at levels experienced over the past three years.
RD chief research analyst Adam Gray said that there will be no new space completed during the 2002/2003 financial year, and with the completion of Riparian Plaza, there would be a total of around 75,000 square metres of new office space added to the CBD market by the end of 2004.