Brisbane’s city office vacancy rates passed 10 percent in the second half of last year, as new supply came online.
Property Council Chief Executive Mike Zorbas said over 220,000sqm of new supply was added across all Australian major cities over the six months to January, just below the historical average of over 237,000sqm.
Mr Zorbas said while Australia’s CBD office vacancy remained steady, there was a divergence across the five major cities.
He said Adelaide and Perth saw vacancy decreases, Melbourne remained steady, and Sydney and Brisbane saw increases “commensurate with new supply”.
“Brisbane witnessed a rise from 9.5 to 10.2 percent.”
Mr Zorbas said, nationally, CBD office vacancy increased marginally from 13.6 to 13.7 percent, with non-CBD office vacancy rate staying at 17.2 percent.
“We have continued to see the supply of new office space above or near the historical average, providing access to a wealth of new, high-quality office space in our cities,” he said.
“Vacancy levels continue to be driven by this large level of supply, as demand has remained positive.”
He said the next six months would see 333,000sqm of supply come online, well above the historical average.
“This supply is spread out across Sydney (83,048sqm), Melbourne (54,327sqm), Brisbane (43,700sqm), Canberra (87,011sqm), Adelaide (23,826sqm) and Perth (41,193sqm).”
Mr Zorbas said on a longer timeframe, Sydney was set to see 277,048sqm of new office supply come online by 2027, with almost half of this space pre-committed to.
“In Melbourne, 252,627sqm will come online by 2027 with 26.9 percent committed to, while Brisbane will see 162,630sqm of new supply with 67.9 percent pre-committed to.”
