Independent Commercial Market Snapshot

SYDNEY

Sydney continues to be one of the tightest CBD markets nationally. It is challenging for tenants in a landlord’s market with the lowest vacancy in 11 years.

Market Status

• Across all grades; vacancy has decreased to 4.2% due to withdrawals and high demand from traditional suburban tenants transitioning to the CBD.
• Disposition and sub lease opportunities are increasing due to high rents.
• Incentives remain soft but have increased slightly in Q2.
• Slight increase in sub leased space.

Vacancy Rates in key areas*

Chatswood 4.2% (decreased)
Crows Nest/St Leonards 7.0% (decreased)
Macquarie Park 4.1% (decreased)
Newcastle 9.1% (no change)
North Sydney 7.9% (increased)
Parramatta 3.0% (no change)
Surry Hills 4.2% (no change)
Sydney CBD 3.8% (decreased)

MELBOURNE

Market Status

• A landlord’s market and challenging for tenants. The lowest vacancy rate nationally due to stock withdrawal and steady population growth.
• Disposition and sub lease opportunities are increasing due to high rents.
• Incentives are stagnant.
• Companies seek to rationalise to reduce costs.
• New stock coming to market with new developments coming online.

Vacancy Rates in key areas*

East Melbourne 2.0% (decreased)
Melbourne CBD 3.5% (decreased)
Southbank 8.0% (increased)
St Kilda Road (decreased)

BRISBANE

Market Status

• Brisbane’s office market demand has increased partially recovering from very high vacancy rates.
• Demand for A Grade and B Grade in the CBD and A Grade in Brisbane fringe has increased.
• Disposition opportunities are still relatively in high demand.
• Incentives are high with a range of options.
• Companies seek to attain higher savings.

Vacancy Rates in key areas*

Brisbane CBD 12.5% (decreased)
Brisbane Fringe 13.8% (decreased)

WHY TRS?

• TRS’ independence from landlords / agents creates stronger leverage on your behalf.
• Landlords believe they hold an “advantage” over tenants; we secure better terms for tenants to safeguard your position.
• We offer advisory services across commercial leasing, renewals, fitouts and make goods.
• Whether you stay or go TRS can optimise your negotiations on any lease service.

We provide independent expert advice to save you more.

 

*TRS research March 19 – Aug 19 vs. previous 6 month period

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