The requested news item does not exist. Please return to News
Owners are seeing the positive side of the market
Green shoots are appearing in the Brisbane CBD market according to JLL National Director and Head of Office Leasing, Adam Barrett, and it means owners are finally seeing the positive side of the market, while tenants need to capitalise on opportunities now.
Barrett explains: "At the beginning of Q1 there was 155 full floor (201,991m²) opportunities available for tenants to occupy in the Prime Grade market between now and 2019 (excluding new developments such as 300 George Street and 20 Creek Street). Strong activity has since seen this reduce by 22 floors (35,238m²) to 133 full floors (166,753m²) – a reduction of 17.44% or approximately 1.5% of the vacancy rate.
"Tenants larger than 5,000m² seeking contiguous space have 10 opportunities now to consider; that's two less than previously.
"A majority of this activity has been in the Golden Triangle and the Rail Corridor, with 180 Ann Street accounting for approx. 20,000m² of this takeup.
He said incentives on average for these transactions ranged between 35% & 40%.
What does this mean for the market moving forward? "The likelihood is that we will see some form of effective rental growth sooner than anticipated, and overall vacancy is declining faster than expected."
"For property owners in the CBD, it means they will finally see the positive side of the market, the upside is finally showing itself via these green shoots. For tenants, it means they need to capitalise on opportunities while they exist because these opportunities will become few and far between."
Barrett said this recent activity was largely in the Prime Grade market in the CBD. "We don't anticipate this trend presenting as significant in the secondary market at this stage because vacancy rates remain a lot higher and we see the continual trend of tenants upgrading and taking advantage of the current incentives available across the market. The flight to quality within the CBD market is alive and well."
Head of Office Leasing, QLD
07 3231 1311