National CBD office vacancy rates rises to 10.9%: Chart of the week
CBD office vacancy rates continue to rise with the greater availability of space putting pressure on yields.
Jones Lang LaSalle recorded negative net absorption of -191,900 square metres in the June quarter and a rise in the national CBD office market vacancy rate to 10.9%.
The graph below also shows the impact of vacant sub-leased space on the rising vacancy rate.
Jones Lang LaSalle reports that five of the six CBD office markets are recording double digit vacancy rates as of June 2013.
Brisbane (14.3%), Adelaide (12.7%) and Canberra (11.6%) recorded higher vacancy over the quarter, while Sydney (10.2%) and Melbourne (10.0%) moved above 10% for the first time in the current cycle.
Perth (7.9%) is the only CBD office market now recording vacancy below 10%.
In line with a rise in vacancies, yields are compressing: