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News release

MELBOURNE

Have all the good sites for future Office Development in Melbourne’s CBD gone?

New research paper and 3D Model - Melbourne’s Changing Skyline examines every CBD site for its future development potential


​Melbourne continues to perform as a global city. Strong population growth and business expansion is fueling residential and pre-commitment led commercial development.  With so much current construction activity, developers and landowners are increasingly unable to secure sites for their next office project.

JLL's Melbourne Changing Skyline report reveals Melbourne's CBD land supply is at an inflection point with availability becoming constrained. This report examines every existing site within the Melbourne CBD, Docklands and Southbank across the Office, Residential and Hotels/ Student Accommodation sectors and assesses it for its future use potential.  This analysis includes review of site size, use, built form levels, age, refurbishment year and planning overlays to deliver a visual of how Melbourne's skyline is changing and the implications for 2030.

Affecting the limited land supply is Melbourne's accelerating prelease market and comprehensive construction pipeline.  In the last 24 months 268,400sqm of Office space has been committed with big movers including ANZ, TransUrban, Deloitte, Australian Unity and Macquarie Bank.   A total of 10 office assets across the Docklands and the CBD are under construction and due to be completed by 2022, delivering a total of 420,000 sqm of Office space.

JLL Victoria Strategic Research Director, Annabel McFarlane said, "Since 2000, development activity in Melbourne's Docklands has increased the size of Melbourne's CBD office market by close to 900,000sqm contributing to 75% of all new CBD stock."

JLL Victoria Managing Director, David Bowden continued, "Docklands is close to being built out and Melbourne is entering a new phase.  Melbourne's livability and affordability will continue to support strong population growth and residential development which will see some CBD precincts change in character.  As the residential pipeline continues availability of sites for CBD Office development will become increasingly rare.

 

"Using digital 3D software JLL has produced an illustrative model addressing – What Next, Have all the good sites for future office development gone? and Is it possible to work out how long before supply constraint starts to impact the market?.  JLL's continued investment in technology has enabled us to present data in an illustrative and informative manner. JLL's research capability is extensive and with this technology we are able to add to the insight we can provide for our clients," added Mr Bowden.