market overviews

record low vacancy rates

 

 

Brisbane

Coming off the back of a sizzling 2007, the Brisbane CBD office market has experienced a record low vacancy rate of 0.7%, making it the second lowest in the world. The Brisbane Fringe market also performed strongly recording 2% as at January 2008. From a leasing perspective there is still significant interest from mining and engineering companies for 'A Grade' office space. State Director of Office Leasing, Matt Kearney said that, “New Brisbane CBD 'A Grade' office developments are now achieving gross face rents of between $600/m2 and $650/m2. In addition, the Fringe office market continues to attract interest from those wanting to obtain competitive rentals in new 'A Grade' offices close to the city. New 'A Grade' office gross face rents in the Fringe currently range between $430/m2 and $520/m2. Gross face office rents should remain stable in the short term while incentives are likely to increase to attract tenants.”

Brisbane CBD and Fringe vacancy rates are expected to increase in the short to medium term as a result of new supply and backfill. There is approximately 133,500m2 of office space expected to be released in the CBD which should see vacancy rates increase gradually. A similar trend is expected for the Fringe although the credit squeeze has led to a number of developments being shelved.

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