Brisbane’s city centre office demand has skyrocketed to over four times the historical average, according to the Property Council of Australia’s January 2023 Office Market Report, released today.
Over the six months to January 2023, Brisbane’s CBD vacancy rate fell from 13.9 per cent 12.9 per cent, as new businesses continue to enter the market, and existing businesses take up more space.
Queensland Executive Director of the Property Council Jen Williams said with over 41,000 square metres of net absorption over six months, Brisbane’s office market is thriving.
“For the second reporting period in a row, Brisbane has reported four times the historical average level of demand,” Ms Williams said.
“Given the pandemic’s impacts on the office sector, this is testament to the strength of the Queensland economy and should be celebrated as a further sign of the positivity in the market.
“Like most office markets, Brisbane has experienced an ongoing flight to quality, as tenants have upgraded into new, premium assets.
“While Premium Grade continues to have the lowest vacancy (5.9 per cent), the demand for space in lower grade assets shows there are new tenants moving into the city from their home or suburban offices, taking up previously vacated space.
“The majority of Brisbane CBD’s positive demand (41,886 square metres overall) was driven by a rise in companies seeking A and B Grade office space, reflecting significant movement and expansion amongst small and medium-sized businesses.
“Brisbane’s Fringe market also recorded a marginal drop in vacancy, falling from 15.4 per cent to 15.3 per cent, over the six-month period.
“With 38,664 square metres of net absorption experienced in Brisbane’s Fringe market over the past six months, forward projections continue to look positive for this market, too.
“With most of the new office space under construction in Brisbane’s CBD already subject to pre-commitments, it’s all-around great news for the city as the economy continues to grow,” Ms Williams said.
Office vacancies are calculated on whether a lease is in place for office space, not whether the tenant’s employees are occupying the space or working from home.
