Market reports

The office market vacancy rate for Sydney CBD has increased from 3.9% to 5.6% in the six months to July 2020 due to limited demand. The forecast in the CBD office market is that vacancy will continue to increase over the rest of 2020 and into 2021 as businesses change their work patterns and look at minimising their office requirements as a result. Subleasing has become more prevalent in the market as a result with some tenants re-cutting leasing deals to take up a small footprint.

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.

The office market vacancy rate for Melbourne CBD has reached a 10-year low and remains the lowest of any Australian CBD. The overall vacancy rate is now at 3.2% as at Jan 2020.  

The office market vacancy rate for Sydney CBD has increased slightly from 3.7% to 3.9% in the six months to January 2020 as a result of an increase of sublease supply. This remains below the 10-year average of 6.8%, with development continued to be considered to meet demand. 

The overall vacancy rate has continued to decline, down from 4.1% as of January 2019 to 3.7% as of July 2019, which is now at its lowest level since July 2008.