Brisbane's office vacancy rate has seen the largest drop of any state capital in the past six months, according to data from the Property Council of Australia.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The latest office market report by the peak property body shows Brisbane's office vacancy rate decreased from 14.7 per cent in July last year to 13 per cent in January this year.
The closure of the Brisbane Transit Centre contributed to the drop, the Property Council's Queensland executive director Chris Mountford said, along with positive tenant demand.
The transit centre will be demolished to make way for the new Cross River Rail, with a new underground train station and the Brisbane Live entertainment precinct being built in its place.
“Brisbane has recorded the largest drop in office vacancy compared to any other state capital. High tenant demand has seen 25,192 square metres absorbed over the past six months – a great indicator of healthy activity in the economy,” Mr Mountford said.
“This is a positive result for the Brisbane CBD. An additional 47,700 square metres of space will come on to the market later this year and the city should be well placed to absorb this new supply, given good demand.”
Mr Mountford said positive tenant demand was also recorded on the city's fringe, with 12,808 square metres of occupancy recorded over the same six months.
Vacancy rates on the fringe increased to 14.8 per cent from 14.6 per cent but Mr Mountford said the result was "largely attributed" to additional office space of 16,729 square metres entering the market.
The Gold Coast also saw a drop in office vacancy rates although not as large as Brisbane - from 12 per cent to 11.6 per cent.
“Market activity has been positive in the Robina-Varsity Lakes, Southport and Surfers Paradise locales, with 2986 square metres of net absorption being recorded across the Coast markets over the
period," Mr Mountford said.
Vacancy rates on the Gold Coast were predicted to tighten further as there was not much new office space expected to come on to the market.
The Sunshine Coast saw a rise in vacancy rates for office space over the six months from July 2018 to January 2019, which Mr Mountford attributed to additional supply.
Over the past year, the Sunshine Coast vacancy rates jumped from 15 per cent in January 2018, to 21.8 per cent in January 2019.
“With a significant amount of new space mooted to enter the market once the Maroochydore CBD is established, it is vital further consideration is given to future demands of the Sunshine Coast office market, and potential alternative uses for space within the new CBD,” Mr Mountford said.
