Conditions for office demand remain resilient in the face of global uncertainty

According to Dexus Research, companies are focusing more on the positive conditions in Australia and New South Wales than the negative global factors regarding leasing decisions.

There has been a solid rise in job advertisements, a significant proportion of which is for white collar jobs, which bodes well for office demand.

Leasing enquiries have been stronger than normal. The last quarter has seen a slight improvement on take-up with net absorption being negative 7,000 square metres for the three months to March 2018.

An unprecedented amount of infrastructure investment continues to support growth in NSW with $81.5 billion to be spent on transport and infrastructure over the next four years.

However, a growing shortage of space is limiting the actual take up of space in spite of the positive business conditions. The availability of vacant space in the CBD is at the lowest it has been for 17 years at 5.5%.

* This data was released with the latest Dexus Office Demand Barometer. The barometer includes five variables based on their high correlation with Sydney CBD office demand, including: ANZ job advertisement series; US ISM Manufacturing Index; Short term business travel departures; NAB Business Confidence Index - finance/business/property sectors; and S&P/ASX 200 Index.

Image and article source: Dexus Research

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