The office market vacancy rate for Melbourne CBD has climbed because of the Covid-19 pandemic to a new level of 5.8% as of July 2020. This is an increase of 2.6% from Jan 2020 and highlights the effect that Covid-19 has had on the market.
Brisbane CBD’s vacancy rate increased to 12.9% in July 2020. This only minor increase in vacancy does not reflect the overall decrease in occupancy rates for buildings. Large amounts of businesses have allowed their workforces to work from home and this has made occupiers look at subleasing excess space.
The office market vacancy rate for Sydney CBD has increased from 3.9% to 5.6% in the six months to July 2020 as a result of limited demand. It is expected that the vacancy will continue to increase over the balance of 2020 as many organisations adopt a work from home policy due to the Covid-19 pandemic.
Brisbane CBD bucked the trend of several other states and saw the total vacancy rate increase to 12.7% in Jan 2020. This was mainly as a result of a major addition of supply, which outweighed the positive net absorption which has increased over the past two consecutive years.