Simon Hunt, Managing Director Office Leasing at Colliers International said “In October alone, the Office Leasing team nationally transacted 52 deals for over 55,000sqm of office space. The October statistic is the highest monthly result in terms of the amount of space transacted for 2020.”
“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 and this is especially true in Metro markets such as Melbourne” Mr Hunt said.
“The Sydney CBD market is also seeing a steady growth of transaction flow with a total of almost 50,000sqm transacted in 2020 to date. Earlier in the year Sydney CBD had a few large briefs hit the market, however these were put on hold due to Covid-19 and we should begin to see these hit the market now in the near future.”
“The Melbourne Metro market has surprisingly been the strongest performing market all year round and in October we saw this market again transact the most amount of area for over 20,000sqm; and even though the city in Melbourne is only slowly reopening in October alone the Melbourne CBD team transacted almost 20,000sqm of office space as well.”
“In terms of enquiry demand, the Office Leasing market is steady compared to prior year. We’ve only seen a slight 3% decrease on the number of enquiries and a 5% increase in the area enquired for Oct YTD figures.”
“When we break the data down quarter-on-quarter; in Q1 we recorded almost 200,000sqm more enquiry than Q1 2019 and this was due to the larger briefs hitting the market in the CBD locations. In Q2 and Q3 when comparing 2020 to 2019 the trends are stable, so despite the onset of Covid-19 restrictions we still saw businesses enquiring and seeing what was in the market and what deals they could get.”
“Metro locations were also proving more popular by enquiry than CBD locations, with Sydney Metro and Melbourne Metro recording more enquiry than their CBD counterparts. We believe this is because businesses were looking for cost effective locations and our Metro landlords are now providing on-par quality assets to their CBD counterparts, and with social distancing restrictions and people wanting to be closer to home these locations proved to be popular.”
“With Melbourne now reopening and all other locations returning to somewhat of a normal working balance, we expect that businesses will look to pursue their real estate decisions to ensure they get the best possible option for their business.”