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:
- Central bank policy rates near peak but volatile bond markets highlight the uncertainty around the extent of monetary policy easing in 2024.
- Leasing activity picked up in some markets in Q3, but occupier markets continue to operate at multiple speeds.
- The pace of rental growth is moderating, with incentives drifting higher in some markets, as tenants revaluate space requirements.
- Investment volume increased in Q3 from a low base, with the settlement of several major transactions, but activity remains well below average levels.
- Office capital values in Australia have begun to adjust to the higher interest rate environment but with a significant lag compared to major overseas markets.