Still plenty of full office floors available for lease in Melbourne CBD: Chart of the week

There are still plenty of full office floors available for lease in the Melbourne CBD according to the latest figures compiled by Savills.

The real estate group counts 76 full office floors available for lease in February, unchanged from January.

At the same time last year, there were 61 floors available for lease.

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Savills says new office developments and government staff cuts in the central Melbourne precinct are behind the high number of prime full floors currently available for lease.

However, the group says the increased availability has sparked a recent spike in enquiry for full floors as tenants look to "take advantage and secure prime opportunities in a tenant’s market". 

Savills’ divisional director o office leasing, Phillip Cullity, says tenants are now increasingly aware that opportunities to secure the best space in the best location occurred in a market where total vacancy levels were on the rise.

"And tenants who have done their research will also realize that a rising total vacancy rate doesn’t necessarily mean a consequent rise in the number of full floors available. For example we now have vacancy at around 7% and 76 vacant floors but when full floors peaked at 88 in July last year the vacancy rate was just 5.6%.

"At the same time they realise that regardless of market phases there will always be competition for quality space and that’s why we are now seeing this upturn in interest from larger tenants.

 "Why wouldn’t you consider your options when you have historically high number of options at a time when there are very competitive rents and the likelihood of equally attractive incentives," he says.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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