Attached is our update on the office market following the recent release of the PCA figures for July 2012.
After peaking at 6.7% in January 2010, the Melbourne CBD office vacancy rate had been falling steadily, reaching 5.2% in January 2012. However, it has now increased to 5.6% (July 2012) with expectations that it will rise further in the next year. Owners are concerned about the increasing amount of sub-lease space coming onto the market, officially at 0.6% but likely to increase to 2.0% according to agents, with the vacancy rate increasing accordingly. The economic slowdown in Victoria is having its effect on the office market too, and while net absorption is still healthy, it is slowing.
Read more 166 VIC Office Market August 2012