Attached is our update on the office market following the recent release of the PCA figures for July 2012.
The rental market at present is fairly dormant with more vacancies than take-ups appearing to be the norm. A passive government and a general lack of confidence has seen some of the older more recognizable entities contract. The Tasmanian boat building industry has contracted while the exit of Gunns from everything except timber has seen Hardware stores and wineries sold off to the mainland, with a fall in local confidence levels.
This has impacted through to the property market with little happening in most facets of the market; agents report stock levels up; buyer levels down. The result is a lack of confidence to enter into new leases by small businesses. Leasing activity is reported as being negligible.
Given the prospects for slow economic growth in Tasmania, conditions in the office market are expected to remain unchanged in the short to medium term.
Read more 165 TAS Office Market August 2012