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Market Overviews

  • NSW
  • QLD
  • VIC
  • ACT
  • WA
  • SA
  • Tenant or Landlord market?

    Landlord

  • Amount of
    supply?

    Under supplied

  • Key Tenant
    Driver

    Location

  • Main sector
    driving demand

    Technology / Banking / Legal / Professional Services

  • Overall
    sentiment

    Positive

Demand

Occupier demand conditions remained strong across the market in 2Q17, with vacancy falling for a second consecutive quarter to 6.4%. Demand for office space was broad based, with multiple industry sectors active in taking space. Despite strong underlying demand, net absorption was a modest 1,900 sqm in 2Q17. This result was negatively impacted by a significant level of stock withdrawals(24,500 sqm), which continued to distort high level demand. This is not reflective of the reasonably strong demand conditions

Supply

Supply additions were subdued in 2Q17, with only one project completing. This quarter follows a strong supply cycle, due to high construction activity over 2015 - 16. The development of International House Sydney in Barangaroo was the sole project to be delivered to the market in 2Q17. The short term outlook for supply will likely continue to be characterised by withdrawals rather than completions.

Click here to download the Q2 office overview for Sydney CBD

Daniel Kernaghan

Head of Leasing - NSW
daniel.kernaghan@ap.jll.com
+61 2 9220 8721

  • Tenant or Landlord market?

    Landlord

  • Amount of
    supply?

    Adequate

  • Key Tenant
    Driver

    Building Grade

  • Main sector
    driving demand

    Professional Services

  • Overall
    sentiment

    Positive

Demand

Net absorption totalled - 2,000 sqm in North Sydney over 2 Q17. Headline vacancy increased by 0.2 percentage points to 8.6 %. However, demand for office space was still prevalent as there was positive leasing act ivity across the market during 2 Q17. Tertiary education provider Australian Catholic University expanded 6 ,1 00 sqm within their existing building at 33 Berry Street, North Sydney. An other significant occupier take - up was Flig ht Centre leasing 5,300 sqm at 60 Miller Street, North Sydney.

Supply

The re were no completions or withdrawals this quarter in North Sydney. Changes to stock are not expected until early 2018, with the refurbishment completion of 88 Walker Street, North Sydney (2,708 sqm) and the completion of the new building at 148 Pacific Highway, North Sydney (1,700 sqm) . The new development at 100 Mount Street, North Sydney is expected to complete at the end of 2018, delivering 40,600 sqm to stock.

Click here to download the Q2 office overview for North Sydney

Paul Lynch

National Director,
Leasing - NSW
paul.lynch@ap.jll.com
+61 415 909 871

  • Tenant or Landlord market?

    Landlord

  • Amount of
    supply?

    Under supplied

  • Key Tenant
    Driver

    Floorplate

  • Main sector
    driving demand

    Banking / Government

  • Overall
    sentiment

    Positive

Demand

JLL Research recorded positive net absorption of 500 sqm in the Parramatta office market over 2Q17. State government agency, WaterNSW, has taken 4,500 sqm of sub - lease space in 1PSQ 169 Macquarie Street, Parramatta.

Supply

The headline vacancy rate decreased by 0.1 percentage point (pps) to 3.6%. The Parramatta office market now has the lowest prime - grade vacancy rate (0.4%) and the lowest total vacancy rate (3.6%) of all the office markets monitored by JLL Research.

Click here to download the Q2 office overview for Parramatta

Scott Butler

Associate Director,
Leasing - Parramatta
scott.butler@ap.jll.com
+61 2 9806 2800

  • Tenant or Landlord market?

    Tenant

  • Amount of
    supply?

    Saturated

  • Key Tenant
    Driver

    Building Grade / Tenant Services / Amenities

  • Main sector
    driving demand

    Government & Education

  • Overall
    sentiment

    Improving

Demand

T he Brisbane CBD recorded its ten th consecutive quarter o f positive net absorption ( 22 , 5 00 sqm ) . The positive result was largely driven by small tenants ( less than 1 ,000 sqm) , who contributed significantly to total net absorption. H eadline vacancy declined across the CBD as a result of positive net absorption , fall ing by 0.8 percentage points (pps) to 15.5%. Furthermore, prime vacancy declined by 0.7 pps to 12.4 %, while secondary va cancy fell by 0.9 pps to 18.8 %.

Supply

During the quarter , 310 Ann street reached completion. The expansion and refurbishment project was undertaken on a speculative basis, delivering 18,400 sqm of A - grade office accommodation . Shayher Group commenced con struction of a new office tower at 300 George Street in 2Q17. The new development will feature 47,700 sqm of office space and is scheduled to complete 1Q 19. The ISPT proposed, Regent tower, has received planning approval for a new 55,000 sqm tower during t he June quarter , further bolstering the supply pipeline.

Click here to download the Q2 office overview for Brisbane CBD

Adam Barrett

National Director
Head of Leasing - QLD
adam.barrett@ap.jll.com
+61 7 3231 1315

  • Tenant or Landlord market?

    Tenant

  • Amount of
    supply?

    Adequate

  • Key Tenant
    Driver

    Building Grade

  • Main sector
    driving demand

    Technology / Education / State Government

  • Overall
    sentiment

    Struggling

Demand

Occupier demand softened across the Brisbane Fringe market over the June quarter. Net absorption totalled - 20,300 sqm , the weakest recorded result since 1Q09. The result was largely influenced by Origin Energy’s move into the CBD, which saw the company vacate close to 24,000 sqm space within the Milton market . As a result of negative net absorption, headline vacancy rose by 1.4 percentage points (pps) to 17.7%, the highest vacancy rate recorded since JLL started tracking the market in 2000.

Supply

There were no new supply additions record ed during the quarter, while two projects are under construction, 900 Ann Street, For titude Valley (18,991 sqm) and K5, King Street , Fortitude Valley (14,921 sqm). Both projects are expected to reach completion during 2018 . There are a number of new projects proposed in the Fringe, however, none are likely to proceed without major pre - comm itments. The supply pipeline will be relatively subdued due to excess space currently available for lease.

Click here to download the Q2 office overview for Brisbane Fringe

Gerry Leyden

Associate Director,
Office Leasing, Queensland
gerry.leyden@ap.jll.com
T: +61 7 3231 1348
M: 0402 792 238
F: +61 7 3231 1314

  • Tenant or Landlord market?

    Landlord

  • Amount of
    supply?

    Under supplied

  • Key Tenant
    Driver

    Location

  • Main sector
    driving demand

    Finance / Legal / Professional Services / Utilities

  • Overall
    sentiment

    Positive

Demand

In 2Q17 Melbourne CBD office market has recorded positive net absorption for the 13th consecutive quarter (24,600 sqm) . 2017 is on track to equal if not surpass the 10 - year annual average of 80,400 sqm . Demand continues to be underpinned by small tenant activity, mainly across prime grade assets.

Supply

The Rialto e xtension at 525 Collins Street was the only completion in the Melbourne CBD office market in 2Q17. The co mpletion contributed 6,000 sqm to office stock and also included 2,000 sqm of retail space. No further Melbourne CBD office projects are due to complete over the remainder of the year . However, an additional 401,200 sqm of office space is expected to compl ete between 2018 - 2020 .

Click here to download the Q2 office overview for Melbourne CBD

Stuart Colquhoun

Head of Leasing - Victoria
stuart.colquhoun@ap.jll.com
+61 3 9672 6531

  • Tenant or Landlord market?

    Neutral

  • Amount of
    supply?

    Under supplied

  • Key Tenant
    Driver

    Building Grade / Tenant Services / Amenities

  • Main sector
    driving demand

    Technology / Professional Services

  • Overall
    sentiment

    Improving

Demand

Net absorption totalled 20,300 sqm this quarter . D ue to a number of stock withdrawals in 3Q16, net absorption for the 12 months to June totalled - 16,383 sqm. The quarterly increase in net absorption can be partially attributed to the high volume of smaller tenant movements (less than 1,000 sqm). H eadline vacancy continued to decrease to a 12 month low of 9.0%. Secondary vacancy displayed the most significant change, with a - 1.5 perce ntage point reduction in the current quarter to 9.7%.

Supply

Total supply in 2Q17 was concentrated to one 4,000 sqm asset which was entirely pre - leased before coming to market. The newly completed building is located at 110 Church Street, Richmond and was leased to Eastern Health (2,500 sqm) and Skoda (1,500 sqm). Building supply in the Fringe market is expected to increase with a further five projects under construction and forecast to complete by the end of 2017.

Click here to download the Q2 office overview for Melbourne Fringe

Richard Norman

Associate Director - Victoria
richard.norman@ap.jll.com
+61 3 9672 6636

  • Tenant or Landlord market?

    Landlord

  • Amount of
    supply?

    Under supplied

  • Key Tenant
    Driver

    Location

  • Main sector
    driving demand

    Professional Services and Education

  • Overall
    sentiment

    Positive

Demand

The Melbourne S.E.S. office market recorded a negative net absorption result for the second quarter of 2017 ( - 1,800 sqm). M inimal activity was recorded over the quarter , whereby vacancies outweighed leasing activity . Over the past 12 months, net absorption recorded a positive result of 30,800 sqm – well above the long term 10 - year average of 5,500 sqm.

Supply

Total stock on record (1,438,646 sqm) remained stagnant over the presen t quarter as no additional completions or withdrawals were recorded. As there are currently no projects under construction and forecasted for completion in 2017, the amount of office space will remain stable for the remainder of the year.

Click here to download the Q2 office overview for Glen Waverley

Josh Tebb

Director, Office Leasing,
Glen Waverley
Joshua.Tebb@ap.jll.com
+61 03 9565 6617

  • Tenant or Landlord market?

    Neutral

  • Amount of
    supply?

    Adequate

  • Key Tenant
    Driver

    Location / Building Grade

  • Main sector
    driving demand

    Technology / Legal / Professional out sourcing Services / Local and Federal Government; Outsourcing Providers

  • Overall
    sentiment

    Positive

Demand

JLL Research recorded 5,300 sqm of positive net absorption in the Canberra office market over 2Q17. Recent leasing activity featured private and public - sector tenants leasing prime - grade space in Civic, Barton and the Fringe precincts. A number of tenants also leased second - grade space in the Fringe precinct over 2Q17. Overall tenant moves (less than 1,000 sqm) produced negative net absorptio n of 2,900 sqm. As such, t he total leasing activity of tenants in the sub - 1000 sqm cohort caused the positive net absorption figure for 2Q17. The prime - grade vacancy rate declined by 0.4 pps to 6.0% Prime - grade vacancy in Barton (3.8%) and Civic (4.2%) decreased by 0.7 pps and 0.4 pps respectively over 2Q17.

Supply

Molonglo Group completed the full refurbishment of 33 Allara Street, Civic (9,202 sqm) during 2Q17. The Murray Darling Basin Authority occupied the 3,983 sqm of space pre - leased in this building.

Click here to download the Q2 office overview for Canberra

Andrew Balzanelli

Managing Director
Sales and Leasing - ACT
andrew.balzanelli@ap.jll.com
+61 2 6274 9818

  • Tenant or Landlord market?

    Tenant

  • Amount of
    supply?

    Saturated

  • Key Tenant
    Driver

    Building Grade

  • Main sector
    driving demand

    Professional Services

  • Overall
    sentiment

    Improving

Demand

The Perth CBD recorded a 0.6 percentage point decline in vacancy over the June quarter, falling to 22.7% . The Perth CBD office vacancy rate was relatively stable over 2016, and continues to show signs of a gradual recovery. Vacancy in Vacancy in Perth’s prime grade buildings decreased by 0.5 percentage points o ver the quarter to 19.5%. The Perth CBD recorded positive net absorption of 10,600 sqm in 2Q17, as several tenant moves were completed, and minimal new vacancy was added to the market.

Supply

There were no completions in the Perth CBD over the June quarter of 2017, with just one office building added to stock over the last 12 - months. The Capital Square office building (48,484 sqm) at 98 Mounts Bay Road, Perth remains the only major CBD office project under construction .

Click here to download the Q2 office overview for Perth CBD

Nick Van Helden

Regional Director
Head of Leasing - WA
nick.vanhelden@ap.jll.com
+61 8 9483 8423

  • Tenant or Landlord market?

    Tenant

  • Amount of
    supply?

    Adequate

  • Key Tenant
    Driver

    Tenant Services / Amenities

  • Main sector
    driving demand

    Technology

  • Overall
    sentiment

    Struggling

Demand

After three consecutive quarters of negative net absorption, demand in the Adelaide CBD rebounded in 2Q17. Total net absorption for the quarter was 10,200 sqm , representing the largest quarterly net absorption total since 4Q08. A combination of centralisation, co - working space conversion, and occupier upgrades resulted in quarterly secondary net absorption of 9,700 sqm. Prime net absorption was also marginally positive at 400 sqm. Overall vacancy in 2Q17 decreased by 0.7 pps to 16.0%. Prime vacancy is currently 11.4%. Secondary vacancy is 18.7%.

Supply

Currently two developments are under construction, both due in 2018. Firstly, a small refurbishment project at 74 Pirie Street (1,490 sqm) is expected in 2Q18. Secondly, Uniting Communities’ mixed - use project, U - City, at 43 Franklin Street will add 5,752 sqm of office space to total stock. The next major project expected to get underway is the 24,000 sqm first sta ge of Charter Hall’s Precinct GPO development at 141 King William Street.

Click here to download the Q2 office overview for Adelaide CBD

Tom Budarick

Head of Leasing - SA
tom.budarick@ap.jll.com
+61 8 8233 8898