Chart of the week: Why 2014 will feature renewed growth in the office market

Property ObserverDecember 7, 2020

The Australian CBD office sector will not boom in 2013, but 2014 will be a year of renewed growth in the office market, according to the latest Colliers International CBD Office Research & Forecast Report for Australia and New Zealand.

All CBD office markets around Australia experienced a drop in A-Grade net effective rents in 2012, with the exception of Adelaide CBD, the report shows.

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Source: Colliers International research

Simon Hunt, Colliers International managing director of office leasing, says there are already positive signs in the market that sentiment is increasing.

He says current conditions are prompting organisations to shift their focus beyond expected low economic growth in 2013 to position themselves for an upswing in 2014 and beyond.

“Tenants are not yet in growth mode but 2013 will be the year they get ready for a more prosperous 2014,” Hunt says.

“In particular, the rental declines in Melbourne CBD and Sydney CBD are likely to have already flowed through the market and some positivity in terms of tenant demand will start to occur by the end of the year.”

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