Find out what’s happening in the Australian office leasing market: www.jll.com.au/office-markets The JLL Office Leasing team has just released Q2 commentaries and statistics, across 12 key office markets.

1. Office Leasing Insights, Australia
Q2 2014 update

2. Office Leasing Insights, Australia
What happened in Q2 ?
The national CBD office market vacancy rate
increased to 12.2%
However, lead indicators for
office sector demand
have improved over the first half of 2014
Business confidence
Job advertisements
Equity market
Office Leasing Insights, Australia

3. Office Leasing Insights, Australia
CBD Office Vacancy Rates Q2 2014
14.81%
16.51%
13.20%
11.13%
12.69%
9.94%
Adelaide
Brisbane
Canberra
Melbourne
Perth
Sydney

4. Office Leasing Insights, Australia
CBD Office markets net absorption
2013/14 Financial Year
The fragmented nature of CBD office markets is proving to be a tale of
two tiers

5. Office Leasing Insights, Australia
Sydney and Melbourne both recorded positive net absorption
There have been significant tenant contractions in secondary stock
By contrast, Brisbane and Perth both recorded negative net absorption
A tale of two tiers
Businesses are using favourable conditions to move into CBD markets

6. Office Leasing Insights, Australia
Looking forward
Professional services and technology-related firms are
Leasing activity is
Over next 3 years, up to
In particular assets with
over the 2014/15 financial year
expected to improve
showing signs of expansion
could potentially be withdrawn from national CBD office markets.
5% of office stock
potential.
residential conversion

7. Office Leasing Insights, Australia
Sydney
“Business conditions are improving within the finance and insurance sectors on the back of broader economic positivity across New South Wales.”
Tim O’Connor Head of Office Leasing NSW & Australia
VACANCY RATE
Decreased to 9.94%
QUARTERLY NET ABSORPTION
Positive: 21,818sqm
SYDNEY

8. Office Leasing Insights, Australia
MELBOURNE
Melbourne
“Leasing demand has improved with many city fringe tenants prepared to seriously assess and ultimately relocate to the CBD”
Stuart Colquhoun Head of Office Leasing, VIC
VACANCY RATE
Increased to 11.1%
QUARTERLY NET ABSORPTION
Positive: 11,100sqm

9. Office Leasing Insights, Australia
BRISBANE
Brisbane
“The road to a stable, balanced vacancy will be reliant on a significant amount of secondary stock being withdrawn between now and 2016.”
Mark Curtain Head of Office Leasing, QLD
VACANCY RATE
Increased to 16.5%
QUARTERLY NET ABSORPTION
Negative: 21,200sqm

10. Office Leasing Insights, Australia
ADELAIDE
Adelaide
“Lease negotiations are still challenging, but it now seems the biggest hurdle to overcome is the abundance of options available to tenants rather than a reluctance to relocate.”
Tom Budarick Head of Office Leasing, SA
VACANCY RATE
Increased to 14.81%
QUARTERLY NET ABSORPTION
Negative: 3,986sqm

11. Office Leasing Insights, Australia
CANBERRA
Canberra
“Private sector tenants have been the main driver of leasing activity in 2014, as outsourcing opportunities within the Government start to increase.”
Andrew Balzanelli Managing Director, ACT
VACANCY RATE
Increased to 13.2%
QUARTERLY NET ABSORPTION
Negative: 26,559sqm

12. Office Leasing Insights, Australia
PERTH
Perth
“Rents will remain under downward pressure over the second half of 2014, with incentives facing upward pressure.”
Nick Van Helden Head of Office Leasing, WA
VACANCY RATE
Increased to 12.7%
QUARTERLY NET ABSORPTION
Negative: 13,800sqm

13. Office Leasing Insights, Australia
Want to know more?
For a full national update visit www.jll.com.au/officemarkets