National Market Update : August 20

MARKET STATUS:

  • The demand outlook is overshadowed due to the hesitant decision making, being felt by organisations. Insights from the TRS team suggest that:
    • Most larger organisations have their workforce still working from home in part or full time
    • Executives are still trying to assess the pandemic’s long-term effects on their business. Any decisions about head count and office requirements seem to be on hold, especially in Victoria
  • The office sector has softened significantly as vacancies rise
  • For Sydney and Melbourne CBD’s, there was the biggest quarterly increase in office vacancy rates since the 1990’s recession. This is compounded by the increase in sub lease space from organisations offloading excess space across multiple sectors
  • Rents eased in June (except in Perth and Canberra where they remained flat) on the back of rising incentives
  • OUTLOOK:
    • There are significant further rises in incentives nationally, as building owners try to preserve both occupancy and face rents
  • Vacancy rates in key areas *
    Sydney CBD  7.5% Up Perth CBD 20.1% Up
    Melbourne CBD  7.7% Up Adelaide CBD 14.7% Up
    Canberra CBD 8.2% Up Macquarie Park  7.1% Up
    Brisbane CBD 12.8% Up North Sydney 13.0% Up
    * Figures are based on TRS research Jan – Jul 20
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