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The latest metropolitan office report from Colliers International shows office markets have not been immune to the global financial crisis but limited supply should help stem a blowout in vacancy rates.
Transactions were few and far between in the six months to March, Colliers International said, and vacancy rates increased across all capital markets.
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In Sydney the vacancy rate rose from 7.83 per cent in the fourth quarter of 2008 to 9.40 per cent in the first quarter this year – the highest rate in the country.
The lack of new supply scheduled to come in to markets in the medium-term however should keep vacancy rates contained, Colliers director of commercial research Felice Spark said.
“We do not expect a blowout in vacancy rates in metropolitan office markets, which will keep rents from falling substantially,” she said.
“However, the sub-lease market is expected to grow as the consolidation of space by tenants will continue, creating some further softening in rents and incentives to rise.”
