Full floor leasing options in Melbourne declines compared to last year: Savills

Full floor leasing options in Melbourne declines compared to last year: Savills
Full floor leasing options in Melbourne declines compared to last year: Savills

The number of full floor leasing options in Melbourne has declined compared to last year, according to Savills’ latest report.

“In Savills’ Prime Full Floor Availability Report, the state of the leasing market is assessed in a different manner to standard vacancy surveys.

The report graphically shows each Premium and A grade building in the city on a floor-by-floor basis highlighting which floors are available for lease, now and in the near future, in each building including those under construction and refurbishment,” the report stated.

Results from the September 2016 Prime Full Floor Availability Report are detailed below.

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Full floor leasing options in Melbourne declines compared to last year: Savills

Savills recorded 135 full floors totalling 192,618 square metres available for lease in A Grade buildings, or 12.7 percent of the market analysed, down from 149 full floors recorded from a year ago.

The number of full floor leasing options available sits at 177 prime grade floors in September 2016, down from 197 full floors 12 months ago.

Full floor vacancy in both Premium and A Grade declined in the 12 months to September 2016.

Vacancy in full floors peaked at 220 in December 2015 with a previous peak of 233 prime grade floors in August 2013.

In recent months, there has been a downward trend of available options.

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Full floor leasing options in Melbourne declines compared to last year: Savills

Melbourne CBD grid (excluding Docklands) total office vacancy rate sits at 7.9 percent as at June 2016.

Whilst vacancy levels had been considerably lower for much of the time, an environment of increased supply levels and rising tenant migration either for upgrade or expansion is contributing to the following vacancy rates:

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Full floor leasing options in Melbourne declines compared to last year: Savills

Melbourne’s vacant office space in the CBD is generally shared by quality grades, with Prime space vacancy at 7 percent and accounting for 14 percent of the total vacancy (59 percent of the total stock) as at June 2016.

Prime vacancy in the Melbourne’s CBD office has declined from 7.9 percent recorded a year ago.

During the past 12 months, Prime quality stock remained steady with the vacancy rates declining with lift in the net absorption levels.

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Full floor leasing options in Melbourne declines compared to last year: Savills

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Melbourne Savills

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