Appetite for CBD office space on the rise

by AB28 Aug 2013

Appetite for leasing Australian office space is on the rise, with year-to-date enquiry levels up 33% on the same time last year, according to Colliers International.

Simon Hunt, Colliers International managing director of office leasing, says the latest enquiry figures show activity in the country’s office markets is strong, despite industry concerns surrounding sentiment.

"According to Colliers International's latest report…lease enquiries were 33% higher in H1 2013 compared to the same period last year," says Hunt.

Despite a fall in the total size of office space leased, the number of lease transactions in the first half of 2013 was 4.4% higher than in H1 2012.

"Small and medium-sized tenants are in the market looking to secure a good deal and are helping to drive current levels of activity. We have heard a lot of doom and gloom about the office leasing market this year, but the facts are that there is activity in the market. Enquiry is positive and I think it is worth considering amongst all the negativity and pessimism surrounding the market at present.”

The largest proportion of deals are occurring in the 1-999sq m range, with 279 leases equating to 82,810sq m taking place in the first half of 2013. This compared to 43 deals totalling 68,147sq m in the 1,000-2,999sq m bracket and eight deals totalling 58,781sq m in the above 3,000sq m range.