August proves to be the strongest month yet for Office transactions across the country

The month of August has proven to be the strongest month in 2020 in terms of transactions occurring in the office market. With majority of states seeing covid-19 restrictions eased, this provides the market with a boost of confidence whilst heading towards the end of the year.

Simon Hunt, Managing Director Office Leasing at Colliers International said “In August alone, the Office Leasing team nationally transacted 69 deals for over 40,000sqm of office space. The August statistic is the highest monthly result since February 2020 when 69 deals transacted across 36,000sqm, with March recording a similar result of 61 deals across some larger transactions totalling 46,000sqm.”

“These numbers provide us with confidence that while businesses did put their real estate decisions on hold during Covid-19 restrictions, they’re now feeling much more comfortable with how the market is playing out and as a result are transacting.” Mr Hunt said.

“Our Colliers International Government Property Services team has also recorded nine briefs in the market for over 89,000sqm; and our Tenant Advisory team for the month of August transacted nine deals throughout Australia.”

“Even with the need for working from home and social distancing, the office is clearly not dead. We know smart businesses are still considering how their office space will play a critical role in the return to work of their people; and the fact that our Office market has seen almost 80 deals for over 43,000sqm transact in August alone in addition to nine Government briefs for over 89,000sqm in the market, it backs up the fact that these businesses and groups are thinking ahead and setting their future office space up for success.”

“With Melbourne in stage four lockdown during the month of August, we still saw a total of 17 deals transact in the CBD and Metro locations for over 8,800sqm; and across the Sydney CBD and Metro markets we saw 27 deals transact in August for almost 21,000sqm of office space.”

“In 2020 we have seen majority of our transactions occur within the Finance and IT sectors; and in August we saw seven of the deals from each of the Government and Property Services sectors and six deals each from the IT and Construction and Trade sectors.”

“Businesses are also still transacting on large space over 3,000sqm; to date we’ve seen 102,000sqm transacted for this size segment and in August we saw over 10,000sqm transacted by businesses on space over 3,000sqm.”

“With enquiry still stable we expect to see our deal flow continue strong for the remainder of 2020 and into 2021.”
 

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Simon Hunt

Managing Director | Office Leasing

Melbourne CBD

As the Managing Director of the Office Leasing Division my team includes over 100 staff and more than 75 leasing operatives across every State and Territory. I have been with Colliers International for 25 years, joining the Office Leasing team in 1993 and worked my way up to Managing Director in 2005.  Along with managing the Office Leasing National Team I hold a number of senior positions within Colliers including a member of the ANZ Executive, Executive Leadership Team and Senior Leadership Team.  I am a Licenced Estate Agent and a member of the Real Estate Institute of Victoria, Property council of Australia and RICS - Royal Institute of Chartered Surveyor.

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