The Property Council of Australia’s Office Market Report for January 2024 indicates that the Australian workforce is pushing for an increase of high-quality office space, with a lower vacancy rate recorded for first-rate spaces in comparison to older office stock.

It makes for intriguing viewing, as vacancy rates on the whole increased by 0.7 percent nationally. Interestingly the vacancy rate for prime office spaces actually sits lower than secondary assets nationwide, excluding Sydney and Adelaide. The Australian CBD prime vacancy rate across the country was 12.9 per cent compared to a vacancy rate of 14.5 per cent in the secondary market.

Property Council Chief Executive Mike Zorbas believes continued efforts by businesses to move towards high-grade office space explains the results.

“There is a clear divergence between older, low-quality stock and the new premium office buildings rejuvenating our cities,” he says.

“Flight to quality aside, it is crucial for governments to champion the significance of our CBDs and the ecosystems of small businesses they support.

“Face-to-face interactions remain something almost all people benefit from in a social and a work sense and we are starting to see that routinely recognised as complementary to the welcome dividends of flexible working.”

The Property Council anticipates that office supply across the country’s CBD will be above historic levels come the end of 2024, while the opposite is expected in non-CBD markets.

To purchase the report, click here.

Image: Heritage Lanes at 80 Ann Street by Woods Bagot.

Jarrod Reedie

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