Office leasing recovery dichotomy: JLL Research
The recovery in office leasing markets gathers momentum, according to JLL's latest national office stats.
The research noted CBD office markets recorded a second quarter of positive net absorption, the first time since 4Q11.
"However, a dichotomy in leasing activity between the service-orientated markets of Sydney and Melbourne and the resource-dependent markets of Perth and Brisbane exists," JLL Research advised.
The figures recorded positive net absorption of 16,200 square metres over the quarter – the first time positive net absorption has been recorded in two consecutive quarters since 4Q 2011.
Nevertheless, the national CBD office market vacancy rate was unchanged at 12.5%, JLL’s National Director of Research, Andrew Ballantyne said.
The recovery in leasing enquiry and activity is concentrated in Sydney and Melbourne. Sydney recorded 27,700 square metres of net absorption over 4Q14 – the highest figure since 2Q10 – taking the full year net absorption figure to an above-trend 70,000 square metres.
JLL’s Head of Office Leasing, NSW & Australia, Tim O’Connor said net absorption surprised on the upside in Sydney over 2014.
