Melbournes Office Space Boom
According to the latest research by BIS Oxford Economics, Melbourne’s office market boom will continue until at least 2024. With rents in prime locations to rise another 30-40% during the next five years
While the present record low CBD vacancy rate of 3.2% is expected to move up, slowly rising above 5% in 2020 as over 250,000 square metres of brand new office space will enter the market, BIS expects this to quickly drop down to around 4 per cent as take up outstrips the new supply in the coming years.
“Apart from a brief spike, we’re looking at six years with a sub-5 per cent vacancy rate,” said BIS property economist Maria Lee.
“That’s unprecedented for Melbourne. Under those conditions the prime CBD market should generate another 30 to 40 per cent growth in rents over the next five years, with values escalating by about 25 per cent,” she added.
Xynergy Commercial have been analysing the new office spaces entering the market and encouraging our investors to consider this as an investment strategy as the residential market continues to decline.
Published by Xynergy Commercial, 2019 – Melbourne Real Estate Agency