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News release

Brisbane CBD office vacancy still relatively tight in buildings with larger floor plates

AUSTRALIA, 12 September 2013 –  Research by Jones Lang LaSalle shows a fragmented Brisbane CBD office vacancy profile, with still relatively tight vacancy in buildings with larger floor plates.

Senior Research Analyst Peter Guevarra said, “A broadly negative correlation exists between floor plate size and the vacancy rate.”

“While the overall vacancy rate of 14.2% in the June 2013 quarter rate was the highest in over 20 years, vacancy in buildings with floor plates over 1,500 sqm was just 5.5%.”

“This floor plate cohort accounts for almost a quarter of all stock, which indicates still strong occupier demand for a significant section of the market.”

“In contrast however, vacancy levels in buildings with smaller floor plates are significantly higher.”

“In buildings with floor plates between 1,000 sqm and 1,499 sqm, the vacancy was 14.2%. But the largest concentration of vacancy is in buildings with floor plates between 500 sqm and 999 sqm, with the vacancy rate in this floor plate cohort at a much higher 18.5%.”

Head of Office Leasing in Queensland Mark Curtain said, “The majority of multi-floor occupiers are looking for large floors to increase visual and physical connectivity, as well as enhance vertical integration.”

“This fosters improved operational efficiency through a more collaborative work environment, allowing for greater interaction between departments and facilitation of better team dynamics.”

“Further efficiency gains can also be made on floors that are open plan, with a side core configuration, and with minimum intrusions, such as columns.”

“In the last 5 years, major corporates such as Telstra, Rio Tinto and BHP have adopted this approach, which reflects the lower vacancy levels in buildings with larger floor plates.”