Commercial office market activity is slowing and dependent on a global improvement in the economy according to an article by CBRE in todays AFR.
“CBRE’s head of global research and consulting, Nick Axford, told a breakfast for 380 of the company’s clients in Sydney yesterday that 2012 had seen a “tailing off” in both commercial property sales and leasing…
Dr Axford said that in all regions the uptick in rental growth and capital values seen in 2010 had retreated.
Prime values were holding up but secondary values were weakening…
CBRE’s new head of research in Australia, Stephen McNabb, said the nation’s commercial property, like so much else, was “adjusting to lower growth”.
But he noted that many of the indicators were “bottoming.”
“We think the worst is over for the consumer , and the worst is over for retail,” he said.
In the industrial sector, the demand from the transport and wholesale sectors has more than made up for the downturn in manufacturing.
But the outlook for jobs growth remains flat, which is not good for office demand.
CBRE’s senior director, office services, Jenine Cranston, said organic growth was virtually absent from the market and was unlikely to return for the next 12 to 24 months.”