could only get small bit of info>
NOT GOOD NEWS

Vacant offices in squeeze on rents


By Line : Maurice Dunlevy Published : 12/08/2004 Clip Ref : 12817045
Publication : Australian Section : Edition Changes - All-round First Page : 6

A column on excess office space. Maurice Dunlevy says more office towers across the country are standing empty than at any one time in the past five years with Sydney CBD experiencing its highest level since 1996 and Melbourne's new office developments resulting in a 'glut of space.'

table of % vacant

PERTH-13.9
ADELAIDE-10.6
SYDNEY-10.3
MELBOURNE-10.2
BRISB-6.9
CANB-3

new space such as Woodside Plaza, Bennett Street Office Building and the recent refurbishments and small projects have inflated Perth's vacancy rate, there has been a positive net absorption though so things are looking up

Interesting article from yesterdays Age on Melbournes Vacancy Rates .

http://theage.com.au/articles/2004/08/10/1092102444929.htm?oneclick=true

Woodside take-up drives CBD demand
Perth’s CBD has experienced the highest growth in demand for office space of any capital city since July 1995, according to the Property Council of Australia’s Office Market Report for July 1 2004.

And a net absorption of 26,000 square metres over the past six months provides a promising outlook for the Perth market, which has struggled over the last few years and has the highest total vacancy rate nationally.

The biannual office market report is collated through data provided by commercial agents and is considered the benchmark by which to measure office vacancy rates.

Although the vacancy rate increased in the past six months from 12.2 per cent to 13.9 per cent, Property Council executive director Joe Lenzo said the figure was very positive.

“The figure six months ago did not include the supply addition of the Woodside Building, so although the vacancy rate has gone up, for the first time in seven years there has been an increase in the amount of space taken up in the CBD,” he said.

The Woodside building is responsible for 46,640sq m of the 62,490sq m of supply additions to the market in the past six months.

Before the Woodside take-up, no additions over 15,000sq m in a six-month period had occurred since the July 1992 market report.

Mr Lenzo said the result of the office market report offered promise for the industry.

“After three flat or down years in office demand, we anticipate that this six-month period signals new growth in the Perth CBD market,” he said.

“I believe we can legitimately forecast that the vacancy rate will go down over the next six to 12 months.”

Mr Lenzo said it was not one-off big deals driving demand in Perth, but rather an up-take of space by existing tenants, particularly in resources, engineering and a smaller contribution from the legal sector.

“We are now optimistic that, in the medium term, the resource and engineering sectors will underpin a stronger commercial office sector in WA, which translates into more employment and wealth in our community,” he said.

“It is pleasing to see strength in underlying demand counteracting the trends of interstate consolidation and corporate downsizing evident in recent years.”

CB Richard Ellis research manager Andrew Woodley Page expects Perth’s vacancy rate will return to its “equilibrium” of 10 per cent by 2007.

“It is superficial to just look at the rise in total vacancy. The net absorption figure is the main thing that tells the story of where the market is at, and it is very positive,” Mr Woodley-Page said.

He forecast an annual net absorption of between 15,000 and 20,000sq m up to 2007, taking into account new space being made available by the Ernst and Young Building (11,450sq m), Allendale 2 (7,200sq m) and the proposals for City Square stage 1 (14,500sq m).

“The market has turned a corner and is looking positive,” Mr Woodley-Page said.

Knight Frank State director of asset services, Ian Edwards, said while the Property Council figures reflected historical trends, Knight Frank’s own research, which predicts future trends, indicated an improving market.

“Our figure takes into account any future deals, movements and buildings coming online, and is currently at 17.5 per cent,” he told WA Business News.

Perth’s other major office market, West Perth, experienced a decreased vacancy rate for the six-month period, moving from 8.1 per cent to 7.8 per cent.

Mr Lenzo said a total vacancy figure of 27,637sq m indicated lots of smaller space rather than any significant single holdings.
http://www.businessnews.com.au/story.php?nid=20268&P_category=9

in perth, its mainly in older offices. most high-class offices have little or no space availible to rent

in perth, its mainly in older offices. most high-class offices have little or no space availible to rent

Same with adelaide - shortage of A and Premium space, glut of shitbox space. Our vacancy rate is set to improve when property owners realise nobody wants their dogboxes and redevelopes them into apartments and whatnot, for example Adelaide Tax Tower - empty for eons, but converted to apartments which all sold off the plan in one night.

its good to hear that it is possible. we have alot of 70's shitboxes particually in east perth that would be sellouts if converted, and due to the simple square design of these, many can be done easy.

Wow, I was just reading an article in Brisbane's prime site that said the exact opposite. Because buildings like Riparian are behind schedule (Riparian is a year overdue) Brisbane is facing a possible undersupply of office space.

From memory about 38,000 square meters of office space is being absorbed in the CBD every year but riparian will only add 30,000 next year.

Most other office towers under construction in Brisbane are already fully pre-committed.

Looks like interesting times!!

jt

what a surprise you dont' have an article to back it up let me guess 3800 becomes 38000 in the eye's of jayt:D

what a surprise you dont' have an article to back it up let me guess 3800 becomes 38000 in the eye's of jayt:D

Page 1 of Prime site in todays courier mail - business section.

Also found this article on line which indicates 17,673sqm absorbtion over the last 6 months. http://www.propertyreview.com.au/archives/2004/11082004/headline/13082004005b.html
_______________________________________________________________________

Brisbane continue to perform
Adam Parsons

The Brisbane CBD has well absorbed the additional office space added to the market over the past six months, according to LandMark White.

The Property Council of Australia Office Market Report shows demand for office space has been increasing since the start of 2004.

LandMark White’s national research director Jennelle Wilson said that although the total vacancy rate increased from 6.4% to 6.9% over the six months to July 2004 the excellent net absorption rates indicated the strong demand for office accommodation in Brisbane.

“Premium accommodation remains virtually impossible to find at the moment with the current vacancy level falling further to 1.1%, a symptom of tenant’s flight to quality over the past three years when they firmly held the upper hand in negotiations,” she said.

LandMark White said the A grade market has been impacted by both new supply to the market and the re-grading of several buildings.

“This means that despite the 40,238sqm in new supply to the market from the entry of 33 Charlotte Street and Bank of Queensland Tower the size of the A grade market has actually fallen from 628,851sqm to 553,200sqm.

“The vacancy rate has also been impacted by the new supply; although the new buildings are more or less fully committed there was still vacant space as at the survey date,”

She said as LandMark White outlined in its forecast report earlier in the year the near city market has experienced a turn-around in its fortunes over the past six months with the vacancy rate falling by 1% point to be 11% as at the July survey on the back of strong net absorption of 17,673sqm.

“The traditional near city markets were the major beneficiaries of this increased demand with both Milton and Spring Hill recording significant declines in their vacancy rate,” said Ms Wilson.

“ With both construction costs and land costs soaring over the past 18 months cost effective accommodation was to be found in the established buildings in the traditional locations, rather than in newly constructed accommodation.

“Long ignored Milton came back into favour and the vacancy rate has dived from 16.2% in January to 12.6% at the current time.

“Spring Hill also saw vacancies fall from 13.4% to 10.7%.”


jt

As the article about Woodside points out, the Perth main CBD absorbtion rate is up.

“The figure six months ago did not include the supply addition of the Woodside Building, so although the vacancy rate has gone up, for the first time in seven years there has been an increase in the amount of space taken up in the CBD,” he said.

The Woodside building is responsible for 46,640sq m of the 62,490sq m of supply additions to the market in the past six months.

Before the Woodside take-up, no additions over 15,000sq m in a six-month period had occurred since the July 1992 market report.

also, West Perth vacancy decreased which is great. I think at one stage Perth's vacancy rate was as high as 30%!!! after the excesses of the late 80's.

I have a feeling it was closer to 50% after all the stock came onto the market is central park, bankwest, QV1, exchange plaza, quadrant etc..