"Positive indicators" emerging in office market: GPT's Michael Cameron

One of the country's biggest office landlords has said "positive indicators" were emerging from Australia's office market in 2014.

In a March quarter operational update, GPT chief executive Michael Cameron said GPT was experiencing "good momentum" with 37,000 square metres of office lease signed or at heads of agreement.

He made a point of saying that GPT had seen "positive indicators in 2014, with levels of enquiry continuing to improve and vacancy across its portfolio reducing to 8.9% at 31 March 2014".

Highlighting the point, GPT noted its announcement this week that top law firm King & Wood Mallesons had signed a new 11,980 square metre lease at its Governor Phillip tower in the Sydney CBD.

His comments were part of a broader update on the trust's performance.

Comparable moving annual turnover (MAT) in the quarter grew 1.5%, while specialty sales growth rose 4.4%.

Mr Cameron said it was please with the positive momentum of nine consecutive months of specialty sales growth at its centres, "however we remain conservative on the broader retail market with our medium term outlook for shopping centre sales, and rents remaining unchanged."

It is anticipating moderate growth. 

Management also noted that its logistics development pipeline continued to expand and that its $7.2 billion funds management platform remained a solid performer, and was poised to "substantially grow throughout 2014".