With vacancies dropping to a near 10-year low in the last quarter of 2017 and prime rents increasing significantly more than 20 per cent over the past year, major corporations are considering office spaces outside of the Sydney CBD.
Sydney's CBD office vacancy fell to 5.4 per cent towards the end of 2017, down from 7.7 per cent a year ago. The amount of vacancy removed from the market (total net absorption) was 187,100 sqm over the year, including all CBD office markets. The national vacancy rate had fallen to 10.4 per cent.
As a result, falling vacancies increase the value of commercial property with yields on premium towers falling below 5 per cent across a variety of recent transactions in Melbourne and Sydney.
Image source: JLL
Article source: http://www.afr.com/real-estate/commercial/leasing/sydney-office-vacancy-rate-lowest-in-almost-a-decade-rents-up-20-pc-20180116-h0j3fo?btis
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