We are pleased to launch our latest Office Briefing Spotlight report. In this edition, we provide an overview of recent macro developments and leasing and investment market trends for the major CBD office markets in Australia.

Key takeaways from the report:

• Inflation could remain higher for longer, but major central banks appear to be at or near the end of the tightening cycle. 

• Tight labour market conditions and an ongoing flight to quality are driving strong demand for prime and well-located office assets.

• The strength in demand at the premium end of the market and high inflation are driving rents higher but the pace of rental growth differs markedly across cities, precincts, and property grades.

• Investment activity slowed further in Q1 reflecting ongoing uncertainty over the outlook for interest rates.

• Prime yields increased by 20bps on average across the major CBD markets, although yields continue to vary considerably at the individual asset level. 

Read our Q1 2023 Spotlight here