Vacancy in the Adelaide CBD was largely unchanged in July 2021, falling slightly to 15.7% from 16.0% as at January 2021. Landlord incentives have also stabilized and sit at an average of 37% to 42% for old generation (pre1990) A Grade buildings, and 35% to 38% for new generation (post 2004) A Grade buildings.
Brisbane CBD’s vacancy remained the same over the 6 months to July 2021, decreasing from 13.6% to 13.5% for a change of only 0.01%. The vacancy rate mainly remained unchanged for several reasons, including attractive leasing terms by landlords to entice tenants to transact and the relatively minor length of lockdowns in Queensland allowing businesses to operate as normally as possible. It is likely however that the vacancy rate will stay above 10% until at least 2025.
The Melbourne CBD has been greatly impacted by the pandemic, especially with the frequency and length of lockdowns disrupting normal business practises. As a result, in the first half of 2021, we saw another increase in the vacancy rate, increasing by 2.0% to 10.4% in the 6 months to July 2021.
The office market vacancy rate for Sydney CBD has increased for the third consecutive 6-month period from 8.6% to 9.2% in the six months to July 2021. This is now the highest vacancy rate since January 2012.