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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
Delivering a successful workplace strategy
A compilation of best practices and research on managing workplace change Continue reading
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
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
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
Adelaide
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
Brisbane CBD
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
Brisbane Fringe
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
Canberra
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
Melbourne CBD
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
Melbourne Fringe
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
Melbourne South East
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
North Sydney
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
Parramatta
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
Perth
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
Sydney CBD
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
Sydney Metro
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
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.
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.
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
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
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
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
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
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
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
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
Melbourne South East Q412
What was everyone talking about in Q4 2012? There was an increase in leasing transactions in Q4 2012 with several key deals taking place just before Christmas across many of the suburban submarkets. Dandenong in particular was very active with … Continue reading
North Sydney Q412
What was everyone talking about in Q4 2012? There was plenty of discussion around new development sites and their perceived realisation dates. Around 120,000 sqm of space is anticipated for North Sydney, with a further 27,000 sqm (approx.) planned for … Continue reading
Parramatta Q412
What was everyone talking about in Q4 2012? Everyone was talking about the recent sale of Eclipse Tower that represented a significant testimony to positive investment sentiment toward Parramatta. The transition of State Property Authority to Government Properties NSW was … Continue reading
Perth Q412
What was everyone talking about in Q4 2012? Q4 2012 has seen a relatively large increase in vacancy as a result of engineering and resource sector companies scaling back expansion plans. There were some speculations on Chevron’s future office plans … Continue reading
Sydney CBD Q412
What was everyone talking about in Q4 2012? We saw a typically busy run-in to the end of the year with a focus on completing transactions before everyone disappeared for the Christmas holiday period. Deals completed throughout the quarter included … Continue reading
Sydney Metro Q412
What was everyone talking about in Q4 2012? The main priority in Q4 2012, as always, was to complete any pending deals. Historically, the fourth quarter in any year is a very busy period within the real estate market, and … Continue reading
Will Barangaroo lead to a re-rating of the Western Corridor?
The Western Corridor has recorded the strongest growth in stock over the past 10 years and is likely to account for over 30% of the Sydney CBD prime-grade office market by 2016. In this Pulse paper, Jones Lang LaSalle has … Continue reading
Investment and Leasing Markets Diverge
The global property markets continue on their forward path, but as we move towards the end of the year there are signs of divergence between relatively resilient investment markets and more subdued leasing markets.
Taking the temperature of Corporate Australia
A rise in sub-lease availability resulted in the first quarterly negative net absorption figure for the CBD office markets since Q2 2009
Adelaide 3Q12
How would you characterise your market at the moment? The Adelaide office leasing market continues to be characterised by cautious tenants and a continuing flight to quality. Unless there is a compelling reason to do so many tenants are electing … Continue reading
Brisbane CBD Q312
How would you characterise your market at the moment? The Brisbane office market has been stagnant, with the overall CBD vacancy rate remaining unchanged at 8.8%, and office occupiers continuing to adopt a cautious approach to future commitments. Clearly, the … Continue reading
Brisbane Fringe Q312
How would you characterise your market at the moment? Tenant demand has definitely slowed over the quarter. There are a several factors playing into this. Demand from the resources sector has softened as mining companies take a more conservative view … Continue reading
Canberra Q312
How would you characterise your market at the moment? The Canberra leasing market is flat and shrouded by a cloud of uncertainty as a result of the impending 2013 Commonwealth election, as well as the continuing pressures on government departments … Continue reading
Melbourne CBD Q312
How would you characterise your market at the moment? Leasing transactions, whilst lower in volume than previous years, have noticeably improved quarter on quarter. We anticipate the remaining months of 2012 to continue in line with the annual trend of … Continue reading
Melbourne Fringe Q312
How would you characterise your market at the moment? Market conditions remain soft. However, there has been a noticeable improvement in the volume of transactions in the St Kilda Rd market in the second half of 2012. These transactions have … Continue reading
Melbourne South East Q312
How would you characterise your market at the moment? The last quarter has seen an increase in tenant activity in the suburban office market with areas like Malvern, Richmond and Hawthorn particularly buoyant. General feedback from these groups are that … Continue reading
North Sydney Q312
How would you characterise your market at the moment? The improvements we saw through Q3 have continued into the final quarter. Of the three key North Shore markets, Chatswood has been the standout performer of 2012, with over 20,000 sqm … Continue reading
Parramatta Q312
How would you characterise your market at the moment? Parramatta currently has the lowest A Grade vacancy rate in Australia (<2%), however tenant demand is also low, as evident in the limited leasing transactions recorded year to date. The market … Continue reading
Perth Q312
How would you characterise your market at the moment? The Perth CBD office market has been extraordinarily strong over the past few years, but the last quarter has seen a slowdown in resource sector activity, and sublease space has started … Continue reading
Sydney CBD Q312
How would you characterise your market at the moment? The best way to describe the market in Sydney is low/low. That is low demand and low supply, which explains to some extent why our research team have pulled back their … Continue reading
Sydney Metro Q312
How would you characterise your market at the moment? Q3 in the Sydney metro market can be described as ‘patchy’. Supply has remained stagnant, and enquiry level has remained low, especially in the lower size range of 300-1,000 sqm. Are … Continue reading
Mixed conditions across Australian CBD office markets
The chasm between the resource-dependent office markets of Perth and Brisbane and the service-orientated markets of Sydney and Melbourne is widening. Statistics released by Jones Lang LaSalle Research showed that the leasing market remained challenging in Q2.
Adelaide
How would you characterise your market at the moment? While enquiry is still inconsistent there are signs of growing activity in the market. Volumes of tenant enquiry have steadily improved throughout the year. The suburban market continues to outperform the … Continue reading
Brisbane Fringe
How would you characterise your market at the moment? The Brisbane fringe market has tightened significantly over the last two years. Demand has been underpinned by the resources sector but we are also seeing space requirements emerge from tenants in … Continue reading
Brisbane CBD
How would you characterise your market at the moment? To the surprise of most market commentators, office market conditions in Brisbane softened in the first six months of 2012. This was a result of weak tenant demand, as well as … Continue reading
Canberra
How would you characterise your market at the moment? The best word to describe the leasing market in Canberra at present is ‘patchy’. The Canberra market continues to have an air of uncertainty behind it, as both sides of politics … Continue reading
Melbourne CBD
How would you characterise your market at the moment? 12 months ago we anticipated a potential lack of alternatives for larger tenants over the next two to three years in the Melbourne CBD, and this would have directly benefitted landlords … Continue reading
Melbourne Fringe
How would you characterise your market at the moment? Tenant activity in the city fringe and St Kilda Road markets remains steady, although the volume of deals is down when compared with 2011. Tenants are favouring quality-fitted offices in these … Continue reading
Melbourne South East
How would you characterise your market at the moment? Tenants’ reluctance to commit to new space was notable in the first half of 2012, with limited transactions occurring over the last three months. Tenants continue to take a long time … Continue reading
North Sydney
How would you characterise your market at the moment? There is a steady level of improvement across the entire North Shore market at present. North Sydney remains active across all enquiry sizes but particularly in Prime Grade space. This is … Continue reading
Parramatta
How would you characterise your market at the moment? The Parramatta Office market remains soft. There is limited activity as tenants retain a degree of caution in making real estate decisions. The majority of tenants in Parramatta are budget conscious … Continue reading
Perth
How would you characterise your market at the moment? From a landlord’s perspective, the current market conditions are positive. With the vacancy rate at 2.9%, the Perth CBD (by a significant margin) is the tightest of any CBD office market … Continue reading
Asia Pacific Office Index, August 2012
Rental performance improves in some markets, capital values remain resilient. Over the next six months, single digit rental growth is expected for most markets and capital values are expected to move largely in line with rental growth. The Office Index … Continue reading
Sydney CBD
How would you characterise your market at the moment? The relatively low level of current tenant demand means that there is little pressure on occupiers to make decisions quickly. Accordingly, the selection process and negotiation of new leases are becoming … Continue reading
Sydney Metro
How would you characterise your market at the moment? Q2 in the Sydney metro office market saw some forward momentum with numerous deals ranging from 500 sqm to 3,000 sqm proceed to heads of agreement. Enquiry levels have remained strong, … Continue reading
A case for Melbourne’s non-CBD office markets
Over the past few years, a number of trends have emerged across non-CBD office markets. Despite the solid market fundamentals and attractive asset pricing, investors for the most part were relatively slow to react. The outlook for the non-CBD office … Continue reading
Adelaide Q1
How would you characterise your market at the moment? It’s patchy. The market lacks any real sense of momentum. There are sporadic bursts of activity but there is very little pattern or consistency to demand at the moment. Are there … Continue reading
Brisbane CBD Q1
How would you characterise your market at the moment? Despite softer than expected tenant demand in the first quarter of 2012, the outlook for the Brisbane office market remains extremely strong. The overall vacancy rate is just 6.1% and the … Continue reading
Brisbane Fringe Q1
How would you characterise your market at the moment? Despite a slight rise in vacancy to 7.7% in, the Brisbane fringe office market continues to experience solid levels of tenant demand. After reaching a cyclical peak of 11.4% in early-2010, … Continue reading
Canberra Q1
How would you characterise your market at the moment? The Canberra market has an air of uncertainty behind it. In some instances, Government departments have a need to relocate, however budget constraints are forcing them to seek fitted-out accommodation or … Continue reading
Melbourne CBD Q1
How would you characterise your market at the moment? The Melbourne CBD leasing market is ‘operating under a cloud’. Tenants continue to behave cautiously by delaying real estate decisions. They are motivated around outcomes that deliver operational efficiencies and by … Continue reading
Melbourne Fringe Q1
How would you characterise your market at the moment? The fringe market has experienced a slow start in Q1 2012. Whilst there have been significant transactions, namely the Treasury Wine Estate commitment to 7,403 sqm at Queensbridge Street, Southbank, the … Continue reading
Melbourne South East Q1
How would you characterise your market at the moment? The first quarter of 2012 has seen continued subdued activity levels across the sub urban landscape. Whilst there have been some major transactions in the market, the majority of these are … Continue reading
North Sydney Q1
How would you characterise your market at the moment? There is definitely activity at the larger end of the market with healthy take up of space over 1,000 sqm across North Sydney and Chatswood. Prime grade vacancy levels in these … Continue reading
Parramatta Q1
How would you characterise your market at the moment? The Parramatta market remained patchy throughout Q1. Enquiries for A Grade stock has softened, primarily due to the fact that most A Grade tenants know there is a lack of suitable … Continue reading
Perth Q1
How would you characterise your market at the moment? The Perth CBD and West Perth office markets are the most tightly held in Australia by a long way. There is an acute shortage of space in these areas. Companies associated … Continue reading
Sydney CBD Q1
How would you characterise your market at the moment? Sentiment has steadily improved since January and whilst demand has picked up over the last six to eight weeks, transactions are still taking considerable time to conclude. The market continues to … Continue reading
Sydney Metro Q1
How would you characterise your market at the moment? The first quarter in the Sydney Metro market can be described as ‘patchy’. Enquiry levels (medium to large) have been quite strong. However, it is still taking a long time to … Continue reading
Report: Asia Pacific Office Index
The Office Index report is a stock-weighted average of rental movements across Asia Pacific.
The Sydney CBD office market – Assessing the downside risk
In this Pulse paper, we explore the short to medium-term supply and demand outlook for the Sydney CBD office market.
Vacancy remains at 7.2% across CBD office markets
Statistics released by Jones Lang LaSalle Research showed that the leasing market had its traditional slow start to the year in Q1. Nevertheless, a small positive was recorded for net absorption across all CBD office markets and the national vacancy … Continue reading
Secondary assets get a new lease on life in Parramatta
Parramatta has a prime vacancy of just 2.2% in Q1/2012 which is the lowest of all prime office markets in Sydney and one of the lowest in Australia.
Adelaide Q411
How would you characterise your market at the moment? Improving. From late last year to early this year, Adelaide saw a dramatic improvement in enquiry from the Government as well as the emergence of the resources sector as a key … Continue reading
Brisbane CBD Q411
How would you characterise your market at the moment? The market has reached an interesting juncture. Prime contiguous space is becoming difficult to find; limited new space that is available for lease is under construction; and the outlook for demand … Continue reading
Brisbane Fringe Q411
How would you characterise your market at the moment? The Brisbane fringe office market has continued to experience high net absorption. This has resulted in vacancy tightening to 7.6% in Q4. There will be limited supply added to the fringe … Continue reading
Canberra Q411
How would you characterise your market at the moment? The Canberra market is truly a unique one whereby circa 60% of the accommodation is occupied by Commonwealth and/or Local Government. Similar to international corporates occupiers, the Commonwealth and Local Governments … Continue reading
Melbourne CBD Q411
How would you characterise your market at the moment? With existing supply at historically low levels and future supply quantified, the missing piece in the Melbourne office puzzle remains demand. Business sentiment has been cautious for the past six months. … Continue reading
Melbourne Fringe Q411
How would you characterise your market at the moment? The Melbourne fringe market has been active at the larger end (greater than 1,000 sqm) yet a little more cautious at the smaller end. We are experiencing good levels of activity … Continue reading
Melbourne South East Q411
How would you characterise your market at the moment? The suburban leasing market has softened in the December period as large occupiers show concern over the worsening Euro zone. Record rents achieved in the 2011 period seem to be falling … Continue reading
North Sydney Q411
How would you characterise your market at the moment? North Sydney, Chatswood and St Leonards have been buoyant over the previous 6-9 months. Vacancy rates, particularly in Prime Grade stock, continue to decline forcing upward pressure on rents. We also … Continue reading
Parramatta Q411
How would you characterise your market at the moment? Parramatta CBD is a two-tier market where prime stock is in high demand but supply is very low with vacancies at below 3%. In comparison, secondary stock has lower demand, but … Continue reading
Perth Q411
How would you characterise your market at the moment? There is significant demand for space at the moment, with large requirements from national tenants. Companies associated with the resource sector dominated demand in 2011, and this trend is likely to … Continue reading
Sydney CBD Q411
How would you characterise your market at the moment? We continue to see evidence of a two tiered market. Those occupiers with less direct impact from Europe and the US continue to view real estate from a longer term prospective … Continue reading
Sydney Metro Q411
How would you characterise your market at the moment? 2012 has seen a positive start in the Sydney Metro leasing market, with numerous enquiries ranging from 500 sqm through to 7,000 sqm. A-grade vacancies have also been reducing in metro … Continue reading
Report: Taking a closer look at non-CBD office markets
Jones Lang LaSalle has recorded strong net absorption, tightening vacancy rates and above trend rental growth in the non-CBD office markets over the past 12 months.
Office rental increases slow across Asia Pacific
Across most of Asia Pacific, office leasing demand has started to slow in 4Q11, as business and corporate hiring sentiment was generally more subdued than the previous quarter.
A Strong Year for Office Markets
Australian CBD office markets record net absorption 20% above the long-term average in 2011.
An Investment Strategy for Perth
Andrew Ballantyne, Director of Research, provides his view on the Perth office market and how investors can make the most of investments conditions in the Western Australian capital. View this article on the Asia Pacific Research Blog.
Adelaide Q311
How would you characterise your market at the moment? It can best be described as fickle. The volume of tenant enquiry has increased but is still below the levels we saw last year. Tenants need a compelling reason to relocate … Continue reading
Brisbane CBD Q311
Brisbane’s CBD office market is a prime example of Australia’s ‘two speed’ economy in action. Strong resource-led demand has regularly surprised the market over the past year and seen the overall vacancy rate fall from 10.6% in mid-2010 to be … Continue reading
Brisbane Fringe Q311
The Brisbane Fringe office market is facing a dilemma. The market continues to experience strong tenant demand, led by the resources sector and the vacancy rate is tightening quickly. This has left very few large options for prime contiguous space … Continue reading
Canberra Q311
How would you characterise your market at the moment? The Canberra market is quite tough. It’s very much a tenants market and tenants or their representatives are continually striving for a sharper deal. Are there any trends you are noticing … Continue reading
Melbourne CBD Q311
How would you characterise your market at the moment? Cautious. Tenants continue to remain hesitant about making long-term decisions given these often result in up-front increased expenditure relative to fitout renewal or complete relocation. With short term supply qualified and … Continue reading
