But in a recent survey, the Property Council of Australia (PCA) now makes all of that official: Office vacancy levels have fallen to 9.5% overall — down from 10% in mid-last year. And this has been driven by strong growth in the mining and financial sectors.
Across Australia, demand last year surged to 302,673 sq m — nearly twice the 20-year average of 173,141 sq m per annum.
“Tenants are making decisions again,” according to PCA’s chief executive Peter Verwer.
The average vacancy rate for CBD markets has fallen from 9% to 8.6% — with all CBDs (except Adelaide and Hobart) enjoying a positive take-up of space last year.
And Melbourne is leading the way, by absorbing some 107,000 sq m.
As such, Melbourne’s Office rentals could surge by as much as 10% per annum during both this year and next — due to its office market being the nation’s tightest.
That’s great news … if you already hold Offices in your portfolio. And a good opportunity, if you don’t.