We are pleased to launch our latest Office Briefing Spotlight report. In this edition, we provide an overview of recent macro developments, investment, and leasing market trends for the major CBD office markets in Australia.
Key takeaways from the report:
- Interest rate cuts are coming into view, with financial markets pricing in policy easing by major central banks in 2024.
- Investment volume increased in Q4 2023, boosted by the settlement of 60 Margaret Street, but activity remains well down over the year.
- Office capital values in Australia continue to adjust to the higher interest rate environment but premium assets are performing better than A grade and secondary assets.
- Leasing activity remains mixed, with negative net take-up concentrated in the secondary market, while the premium market remains relatively tightly held in most markets.
- The pace of rental growth is moderating but remains strong in Brisbane and Perth, while higher average incentives in Sydney and Melbourne are weighing on effective rents.