When looking to excel in the business world, law industry, banking, property industry and more, many Australians and International residents make the move to either Sydney or Melbourne to progress in their careers.
But what many people don’t realise is that currently, Melbourne and Sydney have the tightest vacancy rates for office space in history.
Despite the high volume of new development in the Sydney and Melbourne CBD, vacancies are the lowest they have been in the past 10 years.
The Melbourne CBD office vacancy has hit a record low of 3.2 per cent. Throughout this year, it is expected that almost 400,000sq meters will come onto the market. This will be the biggest annual increase in three decades.
CBRE Director, Caitlin Murdoch said “Melbourne’s Eat End has the tightest vacancy in the CBD and remains a strong preference for banking, government and professional services”.
Due to gradually increasing rent, Savills state director Mark Rasmussen explained “The lack of choice in the market and increasing costs have resulted in many tenants choosing to stay put in their current premises and look to increase efficiencies”.
Office vacancy space in the Sydney CBD is slightly less restricted compared to Melbourne at 3.9 per cent.
Major opportunities are forecast for Sydney with a large works in the pipeline, including 150,000 square meters of commercial space said to be completed this year.
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With less than 4 per cent vacancy for office space in both Sydney and Melbourne, there is no better time for commercial developers to target both major cities.
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