Incentives start to tumble in Sydney and Melbourne
Tenant demand in the Australian office market will continue to diverge between the high demand cities of Sydney and Melbourne and the lower demand environments of Brisbane, Perth and Adelaide. Business and, to a lesser extent, consumer confidence is rebounding in Australia, particularly since Malcolm Turnbull has injected a more positive and economically progressive leadership style in his new position as Australian Prime Minister.
Tenants in the IT and Communications sector continue to drive tenant demand, particularly in Sydney, where LinkedIn, Expedia and Twitter have either taken new space or expanded their footprint. US-based WeWork, the newest player in the short-term flexible office provider market, is also believed to be close to signing their first Australian lease in the Sydney.
Managing Director | Office Leasing
The end of CBD office car parking
Tenant demand for car parking continues to decline and in 2016 this trend is expected to endure. As a result, there will be further development of end of trip facilities in existing and new buildings.
A renewed focus on the development and liveability of our cities by the Federal Government, and the potential for them to assist with the funding of major rail and other non-road infrastructure, is encouraging tenants to reduce their car parking take-up.
Within our CBDs, car parking supply continues to be outstripped by growth in worker numbers which is making it far more expensive to secure parking. In addition, congestion and a push by local city councils to make it more difficult to drive within CBDs will discourage many employees from travelling to work by car.
Head of Corporate Solutions