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Blog: Australian office markets after the boom

The resource boom over the past decade had a major impact on the Australian property market.

Posted in Office News

News: A reduction in sub-lease availability across CBD office markets

JLL Research has released Q1 statistics on the national office markets. While the statistics showed that the national CBD office market vacancy rate remained at 11.7% in 1Q14, JLL recorded a reduction in the amount of space available for sub-lease … Continue reading

Posted in Office News

Adelaide

Genuine need, such as business expansion or contraction, changes in business model or other factors, is driving demand in Adelaide. Without an underlying reason, most tenants are not considering relocation. Continue reading

Posted in Market Overview

Brisbane CBD

What has changed in your leasing market from Q4 2013 to Q1 2014? The overall Brisbane CBD vacancy rate increased slightly during Q1 2014 to 15.5% (up from 15.4%). While the vacancy rate remained alarmingly high, tenant activity increased as … Continue reading

Posted in Market Overview

Brisbane Fringe

What has changed in your leasing market from Q4 2013 to Q1 2014? Q1 2014 was a challenging quarter for the Near City market with a further rise in sublease availability and several tenant contractions resulting in negative net absorption … Continue reading

Posted in Market Overview

Canberra

What has changed in your leasing market from Q4 2013 to Q1 2014? The Commonwealth Government has introduced a number of new initiatives and changes within various government departments including the reshuffling of a number of portfolios. This will likely … Continue reading

Posted in Market Overview

Melbourne CBD

What has changed in your leasing market from Q4 2013 to Q1 2014? Older ten-year lease terms are nowadays really eight-year deals. Landlords are showing a willingness to move early and renegotiate new terms well ahead of a tenant’s lease … Continue reading

Posted in Market Overview

Melbourne Fringe

What has changed in your leasing market from Q4 2013 to Q1 2014? The first quarter of 2014 saw a pleasing turnaround in general enquiry and the volume of transactions. This activity was believed to be partially attributed to a … Continue reading

Posted in Market Overview

Melbourne South East

What has changed in your leasing market from Q4 2013 to Q1 2014? We welcomed the increase in activity that we saw in Q1 2014, which was a marked improvement from last year. Tenants appeared to be more active, and … Continue reading

Posted in Market Overview

North Sydney

What has changed in your leasing market from Q4 2013 to Q1 2014? A healthy level of enquiry has continued from Q4 2013 to 2014. This pipeline has resulted in the completion of a number of deals across small and … Continue reading

Posted in Market Overview

Parramatta

What has changed in your leasing market from Q4 2013 to Q1 2014? The momentum from the end of 2013 continued onto the start of 2014. Enquiry levels from small and medium enterprises (SMEs) (100–300 sqm) remained solid, with a … Continue reading

Posted in Market Overview

Perth

What has changed in your leasing market from Q4 2013 to Q1 2014? The Perth market remained relatively subdued, with slightly increased tenant enquiry levels from Q4 2013 to Q1 2014. Existing demand in Q1 resulted predominantly from tenant relocations … Continue reading

Posted in Market Overview

Sydney CBD

What has changed in your leasing market from Q4 2013 to Q1 2014? The momentum that built into the final quarter of 2013 continued in Q1 2014. This resulted in increased activity levels, particularly in the smaller end of the … Continue reading

Posted in Market Overview

Blog: Are Sydney premium rents inflated?

Sydney is the only Australian CBD market where the prime vacancy rate is higher than the secondary grade vacancy rate.

Posted in Office News

The Office Index 1Q 2014

In 1Q14, aggregate office leasing activity picked up on a y-o-y basis in Asia Pacific, although this was mainly due to patchy improvements in Asia. Corporate occupiers became more bullish in some markets.

Posted in Office News

News: Renewed enthusiasm in the Chatswood office leasing market

Chatswood on Sydney’s North Shore is showing renewed enthusiasm as improvement in space take up and market activity ramps up in 2014.

Posted in Office News

News: Sydney CBD tenants seek non-traditional space in a competitive office market

In Sydney CBD’s highly competitive office leasing environment, owners are looking at different ways to entice a wide array of tenants from a range of industries – including undertaking ‘non-traditional’ corporate office refurbishments.

Posted in Office News

Sydney CBD Office Conversions: Manhattan – a template for Sydney?

Conversion of office space to residential uses is an emerging theme across Australia’s CBD markets.

Posted in Office News

Sydney Metropolitan

What has changed in your leasing market from Q4 2013 to Q1 2014? The start of the year has traditionally been a busy time for leasing markets with good levels of tenant enquiry, as companies evaluate their future space requirements … Continue reading

Posted in Market Overview

What is an ‘average’ prime rent in Brisbane’s Near City?

Strong construction in recent times has widened the quality differential between many newer prime buildings and older existing prime buildings.

Posted in Uncategorized

Asia Pacific Offices 2020 City Report

As part of a suite of Offices 2020 reports on six Asia Pacific cities, this cross-city report seeks to answer: “Where next for Hong Kong, Mumbai, Shanghai, Singapore, Sydney and Tokyo?”

Posted in Uncategorized

News: Adelaide office landlords consider refurbishment in response to tenants’ flight to quality

Secondary office buildings currently make up two-thirds of Adelaide’s total CBD office stock, the largest proportion of all major Australian office markets.

Posted in Uncategorized

News: Docklands comes of age

The Docklands precinct is now larger than Melbourne’s Eastern Core and is the second largest office precinct for prime grade stock in the Melbourne CBD.

Posted in Uncategorized

Adelaide Q4 2013

What changed in your market between Q3 and Q4? Bendigo Bank’s building, 80 Grenfell Street, was completed in late 2013. The new 22,000-sqm office tower is fully leased to Bendigo Bank, which will sublease approximately 6,500 sqm. The bank in … Continue reading

Posted in Uncategorized

Brisbane CBD Q4 2013

What has changed in your market between Q3 and Q4? The increase in the vacancy rate in Q4 was not unexpected, and, importantly, it will now start its journey downward throughout 2014. During this downturn, corporates have been very quick … Continue reading

Posted in Uncategorized

Brisbane fringe Q4 2013

What has changed in your market between Q3 and Q4? The vacancy rate continued to rise, particularly in sublease vacancy, as mining and mining-related companies contracted. Nevertheless, at 12.6% at the end of 2013, vacancy remained well below the CBD … Continue reading

Posted in Uncategorized

Canberra Q4 2013

What changed in your market from Q3 to Q4? The government has introduced a number of new initiatives as well as a number of changes within various government departments including the re-shuffling of a number of portfolios. What was everyone … Continue reading

Posted in Uncategorized

Melbourne CBD Q4 2013

What changed in your market between Q3 and Q4? Broadly, we observed very little change from Q3 to Q4. Leasing transactions continued, albeit with caution as tenants continued to remain cost-conscious. What was everyone talking about in Q4 2013? The … Continue reading

Posted in Uncategorized

Melbourne Fringe Q4 2013

What has changed in your market between Q3 and Q4? The Melbourne fringe market enjoyed a lift in tenant sentiment and activity in Q4 with various deals concluded late in the year but many more at various stages of negotiation … Continue reading

Posted in Uncategorized

Melbourne South East Q4 2013

What has changed in your market between Q3 and Q4? The last quarter of 2014 did not see the flurry of activity that Christmas normally brings with most tenants opting to offset any decisions until the New Year. As a … Continue reading

Posted in Uncategorized

North Sydney Q4 2013

What has changed in your market between Q3 and Q4? There was an increase in real demand as we moved into the final quarter of 2013, particularly in North Sydney. Prospective interests will evolve into completed transactions in 2014; we … Continue reading

Posted in Uncategorized

Parramatta Q4 2013

What has changed in your market between Q3 and Q4? We have seen an increase in market confidence with a number of businesses providing a positive outlook for 2014. Enquiry levels have also increased as a whole, particularly from SMEs … Continue reading

Posted in Uncategorized

Perth Q4 2013

What has changed in your market between Q3 and Q4? The Perth market remained subdued in the last quarter of 2013, with minimal enquiry, increases in vacancy, falling rents and increasing incentives. Less than 20 CBD deals larger than 500 … Continue reading

Posted in Uncategorized

Sydney CBD Q4 2013

What has changed in your market between Q3 and Q4? Sentiment was definitely on the increase in the final quarter of 2013. A change in government, promising a much greater focus on the business sector, had the desired effect of … Continue reading

Posted in Uncategorized

Sydney Metropolitan Q4 2013

What changed in your market between Q3 and Q4? The final quarter is traditionally the busiest of the year and 2013 was no different. We expect to be able to report some healthy market activity for the metropolitan market for … Continue reading

Posted in Uncategorized

Report: The Office Index Q4 2013

Average rents rise marginally across Asia Pacific. Capital value growth picks up.

Posted in Office News

A challenging year for office leasing

Statistics released by Jones Lang LaSalle Research highlight the nervousness of corporate Australia over 2013. However, signs of stabilisation were recorded in the Sydney CBD and Melbourne CBD office markets

Posted in Office News

Adelaide Q3 2013

What has changed in your market from Q2 to Q3? Not a lot has changed from Q2 to Q3. While the federal election is now a distant memory, the looming South Australian election in March 2014 continues to cause uncertainty … Continue reading

Posted in Uncategorized

Brisbane CBD Q3 2013

What has changed in your market from Q2 to Q3? Despite the office market recording its fourth straight quarter of negative net absorption, sentiment improved dramatically during Q3 as a result of increased activity in the brokerage market, as well … Continue reading

Posted in Uncategorized

Brisbane Fringe Q3 2013

How would you describe your market at the moment? The Brisbane near city office market remains challenging, with moderate negative absorption recorded in Q3 2013, and the vacancy rate rising to 11.8%. The positive aspect of the market has been … Continue reading

Posted in Uncategorized

Canberra Q3 2013

What has changed in your market from Q2 to Q3? We witnessed a change in Government on 7 September. The new Government has already introduced a number of new initiatives as well as a number of changes within various Government … Continue reading

Posted in Uncategorized

Melbourne CBD Q3 2013

What has changed in your market from Q2 to Q3? Not a lot has changed. Prime grade demand has continued to be patchy. However, enquiry coming from smaller tenants has been filling the void across most building grades. Sublease space … Continue reading

Posted in Uncategorized

Melbourne Fringe Q3 2013

What has changed in your market from Q2 to Q3? There has been a distinct uplift in tenant sentiment and activity since the federal election. Enquiries for traditional fringe commercial precincts such as St Kilda Road, Southbank and East Melbourne … Continue reading

Posted in Uncategorized

Melbourne South East Q3 2013

What has changed in your market from Q2 to Q3? The market watched the federal election with keen interest for most of Q2, with many hoping that greater certainty in Canberra would stimulate business confidence and create greater activity for … Continue reading

Posted in Uncategorized

North Sydney Q3 2013

What has changed in your market from Q2 to Q3? There has certainly been an improvement in tenant enquiry over the period. We are keeping a close eye on whether this is real demand that will lead to take-up of … Continue reading

Posted in Uncategorized

Sydney CBD Q3 2013

What has changed in your market from Q2 to Q3? Since the Federal election at the start of September, there is a sense that activity levels have increased and, more importantly, confidence levels have started to improve. This is not … Continue reading

Posted in Uncategorized

Sydney Metro Q3 2013

What has changed in your market from Q2 to Q313? The amount of sublease space has increased in the Sydney metro markets, which is a sign that corporates are still cautious of the current economy. Leasing activity has picked up, … Continue reading

Posted in Uncategorized

Parramatta Q3 2013

What has changed in your market from Q2 to Q3? Enquiry levels have increased in Q3, especially from larger occupiers (more than 1,000 sqm), as evident in the increase in briefs currently in the market. The key drivers for larger … Continue reading

Posted in Uncategorized

Perth Q3 2013

What has changed in your market from Q2 to Q3? Sublease vacancy continued to grow. Vacancy among A-Grade properties recorded the highest increase of all the grades (up 3.1 percentage points to 9.5% in Q3 2013). Leasing activity has been … Continue reading

Posted in Uncategorized

Applying Scenario Thinking Techniques To Commercial Real Estate

Scenario thinking is a widely used strategic planning tool following the financial crisis of 2008.

Posted in Office News

Report: Analysing the supply side of the equation

The demand environment is challenging across CBD office markets.

Posted in Office News

Signs of stabilisation across CBD office markets

Statistics released by Jones Lang LaSalle Research show that the physical market conditions started to stabilise in Q3. Jones Lang LaSalle recorded positive net absorption of 12,500 sqm across CBD office markets over the quarter.

Posted in Office News

Global growth accelerating

Global economic growth remains below trend, but now appears to have passed a trough. Nevertheless, a better outlook is creating risks for developing countries, with capital flowing back to the advanced world and affecting currency and equities markets. These risks … Continue reading

Posted in Office News

Report: Brisbane CBD Office Market: the 1990s vs now

Despite Brisbane’s CBD office vacancy being similar levels to the early-1990s, Jones Lang LaSalle’s analysis leads us to conclude that current market conditions are not as bad as they were then. In the 1990s, occupiers carried significant ‘hidden vacancy’ due … Continue reading

Posted in Office News

Report: Parramatta CBD – Reversing the Prime-Grade Office Slide

Parramatta has been the economic heart of Western Sydney ever since the NSW Government initiated a decentralisation plan during the 1980’s. However, despite the city’s status as the second regional centre for Sydney and its continually low prime grade vacancy … Continue reading

Posted in Office News

Adelaide Q2 2013

How would you describe your market at the moment? Uneven demand is combining with rising vacancy to create challenging conditions for building owners. Tenants are thoroughly researching options before committing to a tenancy, with many tenants robustly negotiating across more … Continue reading

Posted in Uncategorized

Brisbane CBD Q2 2013

How would you describe your market at the moment? The Brisbane office market has seen significant negative net absorption (-70,330 sqm) in the first half of this year, with the vacancy rate increasing to 14.2% from 8.8% 12 months ago. … Continue reading

Posted in Uncategorized

Brisbane Fringe Q2 2013

How would you describe your market at the moment? At present, the leasing environment is much more challenging than it has been over the past few years. Pre-commitment deals at completing developments have boosted recent net absorption, but new leasing … Continue reading

Posted in Uncategorized

Canberra Q2 2013

How would you describe your market at the moment? The Canberra office market is still challenging and bracing for change, regardless of which political party ends up governing the country after the Federal Election on 7 September 2013. What was … Continue reading

Posted in Uncategorized

Melbourne CBD Q2 2013

How would you describe your market at the moment? With effectively zero growth, limited Mergers and Acquisitions (M&A) activity, increasing supply and limited demand, any office relocation consideration by tenants is the direct result of an upcoming lease expiry. With … Continue reading

Posted in Uncategorized

Melbourne Fringe Q2 2013

How would you describe your market at the moment? Market sentiment and activity continue to follow a similar pattern, with tenant enquiry remaining soft. With many businesses displaying a high degree of cautiousness in committing to new premises, tenant inspections … Continue reading

Posted in Uncategorized

Melbourne South East Q2 2013

How would you describe your market at the moment? There is renewed vigor in the suburban leasing market with activity increasing in most sectors. The positive signs are that this increasing activity will lead to transactions. A short period of … Continue reading

Posted in Uncategorized

North Sydney Q2 2013

How would you characterise your market at the moment? There was little change from the first quarter into the second quarter of 2013. A relatively healthy level of lease enquiry exists in the sub-500 sqm market. At the larger end … Continue reading

Posted in Uncategorized

Parramatta Q2 2013

How would you describe your market at the moment? The market is subdued and demand is weak. Business confidence appears to be low and most tenants we speak with are cautious. April and May were the quietest months from a … Continue reading

Posted in Uncategorized

Perth Q2 2013

How would you describe your market at the moment? The Perth market has slowed considerably with CBD vacancy now 7.9% and a fourth consecutive quarter of negative net absorption in Q2 2013. Sublease vacancy now represents 3.2% of total CBD … Continue reading

Posted in Uncategorized

Sydney CBD Q2 2013

How would you describe your market at the moment? There continues to be a relative lack of tenants with real motivation to relocate and/or expand across the market. That said the activity levels in the sub-400 sqm size cohort are … Continue reading

Posted in Uncategorized

Sydney Metro Q2 2013

How would you describe your market at the moment? I would describe the market presently as passive. However, there are signs of the market picking up. We are starting to see a steady level of enquiry and building inspections. What … Continue reading

Posted in Uncategorized

Is the Sydney office market immune from a downturn?

In this blog, Rick Warner explores how Sydney’s ties to wider global financial markets could prove a shield against a resource-led downturn in the short-term.

Continue reading

Posted in Office News

Global Sustainability Perspective

In this edition of the Global Sustainability Perspective we discuss how smart buildings can also become renewable energy producers through innovative financing schemes that use investments in a smarter way, substituting capex with cash-flow efficient opex strategies.

Continue reading

Posted in Office News

Tim O’Connor appointed Australian Head of Office Leasing

Current NSW Head of Office Leasing Tim O’Connor has been promoted to assume a National role. Continue reading

Posted in Office News

Report: Asia Pacific Office Index – August 2013

Across Asia Pacific, leasing activity in the Tier I office markets remained generally subdued in 2Q13 on the back of corporate caution, and landlords on the whole are taking a cautious stance on asking rent. Continue reading

Posted in Office News

An unprecedented time in Australian office markets

Research highlights the growing divergence between the investment and physical markets over the 2012/13 financial year, as while physical market conditions are weak, investor demand for core product is strong. Continue reading

Posted in Office News, Uncategorized

The case for Sydney suburban office funds

In this blog, Leighton Waugh explores the significant depth of Sydney’s ‘non-core’ office market, including nine suburban office markets. Continue reading

Posted in Office News

Report: Strategies for the new “normal”

In this paper we identify a range of changes – some of them permanent or structural, others short-term or cyclical, which have been initiated by the Global Financial Crisis. Our research outlines what these changes mean for real estate owners, investors and tenants.​ Continue reading

Posted in Office News

Delivering a successful workplace strategy

A compilation of best practices and research on managing workplace change Continue reading

Posted in Office News

Asia Pacific Office Index, May 2013

Across Asia Pacific, leasing activity in the Tier I office markets remained
generally subdued in 1Q13 on the back of corporate caution. Financial
centres remained weak, with some ongoing contraction in Hong Kong
and Singapore. Continue reading

Posted in Office News

The disconnect between office investment and the physical markets continues

Investors are reading through the current softness in the physical markets, deploying capital and generating pricing tension for core product. Continue reading

Posted in Office News

Report: International Towers Sydney

Sydney’s ageing office stock to be revitalised with developments like the commercial towers that form International Towers Sydney at Barangaroo. Continue reading

Posted in Office News, Uncategorized

Adelaide Q1 2013

How would you describe your market at the moment? There is a sense of uncertainty underpinning the market. While the level of enquiry over the first quarter was healthy, this is yet to translate into transactions. Tenants are approaching the … Continue reading

Posted in Uncategorized

Brisbane CBD Q1 2013

How would you describe your market at the moment? The first quarter of 2013 was concerning for the Brisbane CBD office market, recording the largest ever negative net absorption figure of 57,030sqm. This was a result of the Government withdrawing … Continue reading

Posted in Uncategorized

Brisbane Fringe Q1 2013

How would you describe your market at the moment? The market has certainly remained soft over the first part of 2013. Several large contractions helped push net absorption below previous expectations in the quarter, even though several CBD based tenants … Continue reading

Posted in Uncategorized

Canberra Q1 2013

How would you describe your market at the moment? The office market is challenging and Canberra is bracing itself for change regardless of which political party ends up governing the country after the Federal Election on 14 September. What was … Continue reading

Posted in Uncategorized

Melbourne CBD Q1 2013

How would you describe your market at the moment? Melbourne, like many other Australian CBD office markets is characterised by a challenging demand environment. Occupiers remain reluctant to move or make long-term decisions while commodity and financial markets are volatile. What … Continue reading

Posted in Uncategorized

Melbourne Fringe Q1 2013

How would you describe your market at the moment? Leasing activity and transaction volume in the St Kilda Road and fringe markets remains soft. New enquiries are typically lease expiries or renewals with few businesses seeking expansion space. With little … Continue reading

Posted in Uncategorized

Melbourne South East Q1 2013

How would you describe your market at the moment? The 2013 leasing market has been characterised so far by tenant hesitation when considering alternative office accommodation. Business confidence is definitely at a low ebb and the few tenant moves that … Continue reading

Posted in Uncategorized

North Sydney Q1 2013

How would you characterise your market at the moment? The North Shore markets can be described as challenging at the moment. It has been an interesting start to 2013 considering the strength of 2012. Transactions continue to take longer than … Continue reading

Posted in Uncategorized

Parramatta Q1 2013

How would you describe your market at the moment? Occupiers are cautious and leasing activity in the market is subdued. January and February saw good activity which followed demand from last year. However, March and April experienced little new demand and … Continue reading

Posted in Uncategorized

Perth Q1 2013

How would you describe your market at the moment? The Perth market has slowed considerably with CBD vacancy now 6.5% and negative net absorption recorded in the first quarter of 2013. Sublease vacancy now represents 2.6% of total CBD stock. … Continue reading

Posted in Uncategorized

Sydney CBD Q1 2013

How would you describe your market at the moment? The global economic environment has affected major occupier’s appetite for office space in the Sydney CBD. This uncertainty has also extended the decision cycle for office accommodation from the usual six … Continue reading

Posted in Uncategorized

Sydney Metro Q1 2013

How would you describe your market at the moment? The metro market is very stagnant at present, enquiry level is very slow and the decision process, both locally and internationally, is taking quite a long time. What was everyone talking … Continue reading

Posted in Uncategorized

A difficult year for office markets in 2012

Below trend net absorption in 2012 pushes the national CBD office market vacancy rate towards the upper end of equilibrium.

Posted in Office News

Optimism returns to the global real estate market

The global real estate market steps into 2013 with a more confident stride. An exceptional rally in the final quarter of 2012 has served to demonstrate the strength of investors’ appetite for commercial property.

Posted in Office News

Office Investment Market Review and Outlook 2013

In 2012, Jones Lang LaSalle recorded 125 major office transactions of over AUD 5 million across Australia, totalling AUD 9.38 billion. The figure is the highest level since detailed monitoring commenced in 1987. Whilst inflated by the inclusion of corporate … Continue reading

Posted in Office News

Global Office Index

Jones Lang LaSalle’s Global Office Index tracks the rental performance of prime office space across 90 major markets in the Americas, Asia Pacific and Europe. Rental growth stalled in Q4, with annual growth at its lowest since Q3 2010. Several … Continue reading

Posted in Office News, Uncategorized

Adelaide Q412

What was everyone in your market talking about in Q4 2012? In Q4 2012, the Australian Taxation Office (ATO) completed its move into new accommodation at 12–26 Franklin Street, vacating over 30,000 sqm of existing space in the process. The … Continue reading

Posted in Uncategorized

Brisbane CBD Q412

What was everyone in your market talking about Q4 2012? The final quarter of 2012 was particularly active in the Brisbane CBD development market. The Queensland (QLD) state government announced it would commit to 75,000 sqm at its own 1 … Continue reading

Posted in Uncategorized

Brisbane Fringe Q412

What was everyone talking about in Q4 2012? The final quarter of 2012 saw softer market conditions prevail. Leasing activity in existing space has been very limited with only one deal over 1,000 sqm transacting in the quarter, but was … Continue reading

Posted in Uncategorized

Canberra Q412

What was everyone talking about in Q4 2012? The Australian Capital Territory (ACT) Commonwealth Government Departments and Agencies continue to lease office accommodation on a short-term basis of up to three years. Pressure remains on all Government Departments and Agencies … Continue reading

Posted in Uncategorized

Melbourne CBD Q412

What was everyone in your market talking about Q4 2012? Incentive and demand! With most businesses continuing their inward focus on cost, and by virtue assessing operational efficiencies across resourcing and office costs, Q4 2012 saw lower than normal year-on-year … Continue reading

Posted in Uncategorized

Melbourne Fringe Q412

What was everyone talking about in Q4 2012? The Jones Lang LaSalle Melbourne fringe leasing team concluded the largest transaction in the fringe market in 2012. The Anti-Cancer Council of Victoria leased 8,500 sqm at 615 Saint Kilda Road and … Continue reading

Posted in Uncategorized