Commentary

Q1 stats – how did the market perform?

Confidence returns to offices, industrial rents increase.

April 15, 2021

The Brazilian-American businessman and entrepreneur David Neeleman once said “I’m always crunching numbers”. The JLL Research team can empathise with Neeleman after we recently released our Q1 numbers across the office, industrial & logistics and retail sectors.

All eyes were on the office sublease availability figures across the major eastern seaboard markets. Sublease availability is a barometer of business confidence and recent pulse reports have shown that confidence has improved and organisations are increasing headcount. While the headline sublease numbers were broadly flat over Q1, we did see a number of organisations withdraw sublease space offered in 2020.

Limited industrial & logistics space availability is starting to exert upward pressure on market rents across a number of precincts. Over the 12 months to 1Q21, we recorded positive rental growth in Sydney North (+4.4%), Sydney Outer Central West (+3.5%), Melbourne South East (+2.7%) and Brisbane Southern (+1.1%).

The number crunching continues for the JLL Research team as we go through the process of updating our forecast models. Across the commercial property markets we have 2,730 new data points to be published articulating our view for physical and financial market indicators through 2030.