Investing in office property requires knowledge of the local market
Not that long ago, the office market as a whole was progressing well, right around
However, following the GFC, each local suburban market has been recovering at a different pace.
According to recent research by Colliers International, Sydney's suburban office market seems reasonably balanced – with its vacancy levels ranging from 5.1% in Homebush to 8.7% in Parramatta – with the exception of St Leonards/Crows Nest (at 10.7%), and Norwest (at 15.1%).
But with continued tenant demand and a lack of supply, you should see vacancies decline sharply in 2013.
On the other hand,
At the moment,
The
Rentals here have been increasing through strong tenant demand, and a current lack of new space coming on stream. As such, vacancy levels are likely to fall below 5% during 2013.
Markets within markets
While this brief analysis provides you with a quick "helicopter view" of the suburban office markets in the various capital cities, you really need to focus more on the specific suburban regions within each city.
This will mean going back in time as well as studying the projections looking forward.
By way of example: Let's dig a little deeper within the

Clearly, the south-east region has been consistently outperforming the others. And this is expected to remain the case for the foreseeable future – which would tend to make this particular region your preferred choice.
Bottom line: You can't simply rely upon the general health of a particular capital city market as the sole basis for making your decision.
It is important to peel back the layers and delve below the surface to reveal the underlying trends and ensure you have some real substance to justify your intended purchase.
And having that local knowledge will go a long way.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, his-best.biz, which he updates regularly about the best way to get the most out of your commercial property investment.