Australian CBD Office Overview, by Real Estate Commercial
Curious about what’s happening in the Australian office market? Demand by investors — both domestic and Chinese — is up, but so are vacancy rates in most CBDs. Yields for top-quality space “have been firming and A Grade rents are forecast to grow in 2014.” As of July 2013, the commercial office markets in Melbourne, Sydney, Adelaide, Brisbane and Perth totaled more than 14 million square meters, or more than 151 million square feet. The average yield for an A Grade office building in December 2013 ranged from 6.75 percent in Sydney to 8.5 percent in Adelaide.
Sales volumes in Brisbane, Perth and Melbourne were at their highest since 1997. Seventy percent of investors in CBD office buildings were domestic investors in 2013, while Chinese investors were the most active purchasers of secondary grade buildings in Sydney and Melbourne. For more, see the infographic “Australian CBD Office Market Review: 2013-2014” on the realestatecommercial.com.au website.
Add a Comment
We welcome your thoughtful comments. Please comply with our Community rules. All comments will display your real name.