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Melbourne CBD - what is driving centralisation

There is increasing demand from City Fringe occupiers for quality, well presented stock - driven by cultural change, cost savings, contraction and expansion activities, and changes in the way people are working. Currently, there is limited quality supply and a muted development pipeline in the city Fringe.  Higher incentives available in the CBD and narrowing of the rental spread between the Melbourne CBD and decentralised markets have precipitated a wave of centralisation. As a result, tenants are increasingly citing cost and quality advantages offered by Grade A assets in the CBD in their decision making.​

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