Australia national office market overview 1Q21
1Q21 statistics on the national Australia Office markets.
While the economic recovery is underway, demand for office space is yet to recover, with larger corporates continuing to contract or put sublease space to market, placing upward pressure on vacancy rates. However, there is increasingly positive leasing activity in the sub-500 sqm cohort of the CBD markets. Face rents broadly held firm, although incentives increased, to varying degrees, which negatively impacted effective rents across Australia’s office markets.
Investment activity continued to improve particularly from offshore groups. Solid sales evidence has resulted in yields holding firm (or compressing) across the CBD and metropolitan office markets.