JLL Australia National Office Market Overview 2022

Australia | Q2 2022
Office Market
Overview
National | Adelaide CBD | Brisbane CBD | Brisbane Near City | Brisbane Near City | Canberra
| Chatswood | Macquarie Park | Melbourne CBD | Melbourne Fringe | Melbourne S.E.S. |
North Sydney | Norwest | Parramatta | Perth CBD | West Perth | Sydney CBD | Sydney South
| Sydney Olympic Park & Rhodes | Sydney Fringe | St Leonards
Foreword
Australian CBD office market net
absorption totalled -3,700 sqm over 2Q22,
driven by consolidation activity in
Melbourne, Adelaide and Canberra.
Brisbane CBD quarterly demand surprised
on the upside, supported by new office
completions and centralisation activity.
Weighted Australian CBD prime gross

effective rents recorded a second
consecutive quarter of positive growth,
indicating that effective rents are gradually
recovering.
Australian office investment activity totalled

AUD 1.72 billion over 2Q22. This was the
lowest quarterly result since 1Q12. Prime
CBD yields were unchanged over the
quarter.
Andrew Ballantyne
Head of Research – Australia
T +61 2 9220 8412
Andrew.Ballantyne@ap.jll.com
Paul Chapko
Director
T +61 2 9236 8024
Paul.Chapko@ap.jll.com
Office market overview 1

National Australia | Q2 2022
We have released our 2Q22 results on the National CBD office

m arkets. Net absorption w as negative for the first time since
1Q21. Three out of the six CBD markets recorded negative net
absorption over 2Q22: Melbourne, Adelaide and Canberra.
Three assets reached practical completion over 2Q22 across

the national CBD m arkets. Completions totalled 161,400 sqm
across three assets, with the aggregated pre-commitment rate
being 80%.
Australian CBD prim e gross effective rents (PGER) increased

by 1.0% over the quarter. This w as the second consecutive
increase in effective rents and is an indication that w eighted
national CBD effective rents are currently in the recovery phase of
the cycle.
Dem and recovery could be hindered by w eaker economic

outlook. Business surveys have reflected a dip in confidence over
recent months w hich could impact business decision making over
the short-term. How ever, job advertisement figures remain strong
and unemployment figures are at 45 year low s, which suggest that
businesses remain in expansion mode for the time being.
1.0% 5.06%
Prime Gross Effective Rental Grow th q-o-q as at 2Q22 Prime Weighted Average Yield as at 2Q22
Rents: Yields:
Face rental grow th over CBD markets of 1.0% in The National CBD office w eighted prime midpoint
2Q22 outpaced a very minor upw ard adjustment in yield w as unchanged over the quarter at 5.06%.
incentives across five of the six CBD markets w hich Pricing for quality CBD assets is holding up for the
slightly dampened the effective rent growth over the time being. How ever, we have already recorded
quarter. yield softening in some Australian metropolitan
office markets.
AUD 1.72 14.0%

Total Office Market Sales (AUD billion) as at 2Q22 Headline Vacancy Rate as at 2Q22
Dem and and vacancy:
Transactions: Australian CBD office market net absorption totalled
Australian office investment activity totalled AUD -3,700sqm over 2Q22, w hich was the first quarter of
1.72 billion. This w as the low est quarter of negative demand since 1Q21. Consolidation activity
transaction activity since 1Q12. Increased economic by larger organisations in Melbourne, Adelaide and
uncertainty and rising cost of debt has impacted Canberra drove the negative result. The
purchaser sentiment. The sale of 4-6 Bligh, Sydney consolidation w as from a broad range of industry
CBD by SC Capital Partners to Holdmark for AUD sectors including the finance, utilities, education as
210.0 million w as the largest sale of the quarter. w ell as the public sector.
Australian Office Sales Positive demand w as recorded in the Sydney,

Brisbane and Perth CBD markets. Brisbane CBD
AUD millions net absorption surprised on the upside, driven by
25,000 positive level of preleasing into new office stock, as
w ell as centralisation activity.
20,000 The minor negative demand result, as w ell as
backfill vacancy from new office completions
15,000 increased the Australian CBD vacancy rate from
13.5% in 1Q22 to 14.0% in 2Q22. The current
10,000
vacancy rate remains w ell above the 10-year
average of 11.2%.
5,000
0
2016 2017 2018 2019 2020 2021 2022

Adelaide CBD Australia | Q2 2022
Net absorption totalled -11,823 sqm over 2Q22, after four Market Balance
positive consecutive quarters previously. This w as driven
by backfill space filtering into the market from occupiers
preparing to relocate into multiple new office towers. 40,000 18%
No projects completed over the quarter. Three projects are 16%
30,000
set to complete over the second half 2022, totalling 35,600 14%
sqm. 20,000 12%
Prim e gross effective rents increased by 0.1% over the 10%
10,000
quarter (0.5% y-o-y). Face rents increased by 0.5% and 8%
incentives increased marginally to 39.06%. - 6%
Investment activity over 2Q22 totalled AUD 20.9 m illion, 4%
-10,000
bringing the yearly total to AUD 563.7 m illion. Investment 2%
markets w ere quieter this quarter amidst an uncertain financial -20,000 0%
environment. 2Q22 represented the low est investment volume
quarter over the past year, w ith only one transaction recorded. 17 18 19 20 21 22
The Conservatory on Hindmarsh at 131 Grenfell Street w as Net Increase in Stock (sqm) Net Absorption (sqm)
sold by Centuria Office REIT to Sentinel Property Group on an Vacancy Rate (%)
initial yield of 8.02% on a rate of AUD 6,173 per sqm. Source: JLL Research as at Q2 2022
Gross Effective Rent
400
350
15.4% 300
Vacancy:
The prime vacancy rate has increased to 13% over 250
the quarter w hile the secondary vacancy rate
decreased to 17.2%. Overall, the headline vacancy 200
rate has risen to 15.4%.
150
-11,823 sqm 100
Net absorption:
We recorded negative net absorption of -11,823 sqm
over 2Q22. Sublease vacancy decreased to 2.7% of Prime Gross Effective Rent $ sqm p.a.
total stock over the quarter. Secondary Gross Effective Rent $ sqm p.a.
Source: JLL Research as at Q2 2022
Prime Yield Range
10.00%
35,600 sqm
Construction:
9.00%
There are currently three projects under construction
across the CBD totalling 35,600 sqm - equivalent to
9.2% of current total stock. These developments are 8.00%
expected to be delivered betw een 3Q22 and 4Q23 and
have achieved an aggregated pre-commitment rate of
7.00%
52%. 85% of total sqm under construction is in the
Core Precinct.
6.00%
5.00%
4.75-6.75% 4.00%
Yields:
The prime yield range remained stable this quarter
at 4.75%-6.75%. Secondary yields w ere
unchanged over the quarter, remaining at 6%- Source: JLL Research as at Q2 2022
8.50%.

Brisbane CBD Australia | Q2 2022
Strong positive net absorption recorded over the quarter

as large briefs finalised in the market. Large Market Balance
occupiers(>1,000sqm) contributed 34,356 sqm to net
150,000 20%
absorption over the quarter, w hile small tenants (<1,000sqm)
contributed -6,638 sqm. We anticipate for the number of briefs 15%
and tenant sentiment to decline in the near-term amid 100,000
inflationary pressures and rising cost of debt. 10%
50,000
80 Ann Street reached practical completion over the 5%
quarter delivering 60,243sqm of office space. Other 0
0%
projects currently under construction include the refurbishment
of 444 Queen Street, and construction of 205 North Quay and -50,000
-5%
360 Queen Street.
-100,000 -10%
Strength in the investment market has lagged in 2Q22.
Investors face a generally uncertain macro-economic -150,000 -15%
environment of increasing interest rates and rising inflation 12 13 14 15 16 17 18 19 20 21 22
creating hesitancy in the market. Only one asset transacted Net Increase in Stock (sqm) Net Absorption (sqm)
over the quarter for AUD 109 million.
Source: Vacancy Rate (%)
JLL Research as at 4Q20
A m ismatch between landlord and occupier m arkets has Source: JLL Research as at 2Q22
em erged. Both prime gross effective rents (PGER) and
secondary gross effective rents (SGER) have recorded
increases of 1.7% and 1.8% respectively over the quarter. Gross Effective Rent
Prime incentives have remained at elevated levels over the
quarter increasing by 0.2% to 43.0%. Secondary incentives $500
remained stable at 44.6%.
$450
$400
$350
15.4% $300
Vacancy:
Headline vacancy has increased over the quarter to 15.4% $250
w hich can partially be attributed to the added vacant space
from the completion of 80 Ann Street. Prime vacancy $200
increased by 1.6% to 16.8% w hile secondary vacancy 2Q18 2Q19 2Q20 2Q21 2Q22
decreased by 1.0% to 13.7%.
Prime Gross Effective Rent Secondary Gross Effective Rent
Source: JLL Research as at 2Q22

27,718 sqm
Net absorption:
The bifurcation for primary and secondary absorption was
29,384 sqm and -1,666 sqm respectively, highlighting the Prime Yield Range
theme of flight-to-quality and the trend of tenants
focussing on improving their overall w orkplace offering. 9.00%
8.00%
108,834 sqm
Construction: 7.00%
80 Ann Street has reached practical completion over 2Q22
and has delivered 60,243sqm. The building offers the
largest floor plates in the Brisbane CBD, spread across 31 6.00%
levels. 94.7% of the asset has been absorbed by occupiers
w ith 3,167 sqm remaining vacant.
5.00%
4.00%
5.00-6.25% 2Q10 2Q13 2Q16 2Q19 2Q22
Yields:
Both prime and secondary yields remained stable over the Range Primary Yield Average
quarter. The prime mid-point (5.63%) remains the tightest
held mid-point recorded since JLL began tracking the series. Source: JLL Research as at 2Q22
The secondary mid-point (6.38%) also remains at the
tightest point recorded since 4Q07.

Brisbane Near City Australia | Q2 2022
Tenant hesitancy begins to rise due to uncertain m acro- Market Balance

economic environment. Net absorption w as largely driven
by small tenants (<1,000sqm), having contributed 4,062sqm 80,000 20%
over the quarter. Large occupiers recorded gross take-up of
25,098 sqm, w hile contributing total net take-up of -978 sqm 16%
to net absorption. 40,000
12%
Fortitude Valley precinct continues to dominate the
supply pipeline. 58.8% of projects under construction are 0 8%
situated in Fortitude Valley, w ith 72.4% of projects w ith
plans approved are also situated in the precinct. 4%
-40,000
0%
Weak investment activity recorded over the quarter.
Three assets transacted for a total of AUD 36 million. This -80,000 -4%
transaction value is significantly low er than its 10-year
quarterly average of AUD 182 million. 12 13 14 15 16 17 18 19 20 21 22
Net Increase in Stock (sqm) Net Absorption (sqm)
Effective rents increased marginally. Prime gross face Vacancy Rate (%)
rents have continuously increased quarter-on-quarter
reaching AUD 613 psm over 2Q22. Incentives remain Source: JLL Research as at 2Q22
sticky at elevated levels maintaining 43.3% q-o-q. In the
secondary market, secondary gross face rents also
increased over the quarter to AUD 478 psm.
$320
$300
18.5%
Vacancy: $280
Headline vacancy was effectively stable decreasing by
0.3% to 18.5%, w hich accounts for the expansion $260
experienced through the positive net absorption recorded.
Both prime and secondary vacancy rates remained $240
relatively unchanged at 19.4% and 17.6% respectively.
$220
$200
2,836 sqm 2Q18 2Q19 2Q20 2Q21 2Q22
Net absorption: Prime Gross Effective Rent Secondary Gross Effective Rent
2Q22 recorded a stronger net absorption figure in
comparison to 1Q22 reporting at positive 2,836sqm. In- Source: JLL Research as at 2Q22
decision w ith regards to space commitments continues
quarter-on-quarter instigated by companies being
uncertain on how to balance flex-work.
Prime Yield Range
10%
74,107 sqm
Construction: 9%
Four developments are under construction totalling
74,107sqm. Three of these projects are due for
completion by the end of 2022, w hile the remaining 8%
project is set for completion in 2Q23. A further
73,693qm of commercial developments have plans
submitted across Fortitude Valley only. 7%
6%
5.50% - 7.25%
5%
Yields: 2Q12 2Q14 2Q16 2Q18 2Q20 2Q22
The prime midpoint yield has remained unchanged over Range Primary Average Yield
the quarter at 6.38%, maintaining a yield range of 5.50% -
7.25%. The market’s secondary yield range has been Source: JLL Research as at 2Q22
maintained at 6.00% - 7.75% for eleven consecutive
quarters.

Canberra Australia | Q2 2022
Headline vacancy increased to 6.1% in 2Q22, this is the Market Balance

first increase in vacancy since 3Q20. The prime vacancy
rate increased over 2Q22 to 3.9%, w hile the secondary
vacancy rate declined to 10.1% this is the low est since 100,000 20.0%
4Q09.
There were no completions recorded over the quarter. 15.0%
How ever, there are seven projects under construction 50,000
across the Canberra office market totalling 151,400 sqm
10.0%
sqm
w ith an expected completion date betw een 2022 and 2024.
Prim e gross effective rents increased by 0.1% Q-o-Q to 0
$347 over the quarter. The slight grow th was driven by face 5.0%
rents recording a 0.5% increase, this w as balanced by prime
incentives marginally increasing by 0.2% over the quarter.
-50,000 0.0%
2021
2022
2012
2013
2014
2015
2016
2017
2018
2019
2020
Three sales transactions were recorded over the
quarter, totalling AUD 89.8 m illion. Five out of seven
projects have an expected completion by the end of 2022.
Net Increase in Stock (sqm)
$400
-14,000 sqm $350

Net absorption:
$300
The Canberra office market recorded negative net
absorption of -14,000 sqm in 2Q22. The negative result
w as driven by the consolidation of large office tenants $250
(>1,000 sqm). The slow er quarter in leasing w as also
driven by the Federal Election in May 2022. $200
Prime Gross Effective Rent $ sqm p.a.

Secondary Gross Effective Rent $ sqm p.a.
149,000 sqm
Construction: Source: JLL Research as at Q2 2022
There are seven projects under construction across the
Canberra office market totalling 149,000 sqm. Five out of
seven projects are expected to be completed by the end Prime Yield Range
of 2022 totalling 96,000 sqm, including the refurbishment
of 5 Constitution Avenue, City (12,000 sqm), w hich is due
to complete in 4Q22.
9.00%
8.00%
6.1% 7.00%
Vacancy:
The Canberra vacancy rate increased by 0.6pps to 6.1% 6.00%
over the quarter, w hich was the first increase in headline
vacancy since 3Q20. How ever, Canberra’s vacancy rate 5.00%
remains the low est amongst the CBD office markets.
4.00%
Prime Yield Range

4.75-6.00% Source: JLL Research as at Q2 2022
Yields:
The prime and secondary yields remained unchanged over
the quarter to range betw een 4.75%–6.00% and 5.50%–
9.25%. Yields remained unchanged due to a quieter
investment market and limited transactions volumes.

Chatswood Australia | Q2 2022
Chatswood recorded negative -500 sqm of net Market Balance

absorption in 2Q22. This w as mainly driven by a fall in
demand for secondary stock by small tenants. 20,000 20%
There were no major withdrawals or completions this 10,000
quarter. There are tw o projects with approved development
15%
plants that w e are tracking in our development pipeline that
could add up to 34,600sqm of office stock to the market. -
Investment m arkets were quiet over 2Q22 w ith no major -10,000 10%
(> AUD 5.0 m illion) transactions recorded. The last
transaction recorded was the sale of 6-8 Help Street, -20,000
Chatsw ood in 1Q22 for AUD 39.2 million to an undisclosed 5%
buyer. -30,000
Chatswood prime gross effective rents increased by -40,000 0%
1.7% over the quarter, reflecting y-o-y growth of -4.4%.
Average prime incentives w ere stable at 36.2% w ith vacancy 2017 2018 2019 2020 2021 2022
rates remaining at elevated levels. Total Completions (sqm) Net Absorption (sqm)
Vacancy Rate (%)

$600
-483 sqm $500

Net absorption:
We recorded slight negative net absorption of -483
sqm in Chatsw ood over 2Q22, w hich was driven by $400
soft demand for secondary stock outweighing
demand for prime stock. No large tenant moves
w ere recorded over the quarter. $300
$200
Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22
0 sqm Prime Gross Effective Rent $ sqm p.a.
Construction: Secondary Gross Effective Rent $ sqm p.a.
No assets are currently under construction in
Chatsw ood, reflecting a limited supply pipeline
over the short-term.
Prime Yield Range
8.00%
17.6%
Vacancy:
The prime vacancy rate has decreased over the 7.00%
quarter to 20.3% w hile the secondary vacancy rate
increased to 15.4%. Overall, Chatsw ood headline
vacancy increased to 17.6% this quarter. Vacancy 6.00%
still remains w ell above the 10-year historical
average of 11.0%.
5.00%
5.25-5.75%
4.00%
Yields:
The Chatsw ood prime yield range remained stable Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22
over 2Q22 at 5.25%-5.75%. Secondary yields w ere Source: JLL Research as at 2Q22
also steady over the quarter, ranging from 5.63%-
5.88%.

Macquarie Park Australia | Q2 2022
The Macquarie Park office market recorded a negative Market Balance

net absorption of -3,700 sqm in 2Q22. The result w as
driven by the consolidation of several larger corporates in
the market. 60,000 15%
No office projects w ere completed over the quarter. 40,000
There are currently three projects under construction
10%
totalling 43,900 sqm. Tw o of these developments are 20,000
sqm
scheduled to complete in the second half of 2022.
0
Prim e gross effective rents were stable at AUD 379 per 5%
sqm per annum in 2Q22, and up by 1.1% Y-o-Y. Prime -20,000
incentives increased 0.5 pps to 30.3%.
No office transaction greater than AUD 5 m illion w as -40,000 0%
recorded over the quarter. The sale of 6 & 7 Eden Park 2017 2018 2019 2020 2021 2022
Drive, Macquarie Park, by Altis Property for AUD 134 million
in 4Q21 w as the most recent transaction recorded in the
market. The asset w as acquired by Evolution MIT Services, Net Absorption (sqm)
acting as trustee for Starw ood Capital and Arrow Capital Vacancy Rate (%)
Partners.

-3,700 sqm $450
Net absorption:
The Macquarie Park office market recorded
negative net absorption of -3,700 sqm in 2Q22. It $400
w as largely due to several major tenants
consolidating office space. However, there was $350
positive leasing activity by sub-500 sqm tenants.
$300
$250
$200
43,900 sqm
Construction:
Three office projects are currently under Prime Secondary
construction. The largest projects under
construction are Macquarie Exchange 4 (17,000 Source: JLL Research as at 2Q22
sqm) expected to complete in 3Q22 and 1 Eden
Park Drive (10,000 sqm) expected to complete in
4Q22.
Prime Yield Range
7.50%
14.4% 7.00%
Headline Vacancy: 6.50%
Headline vacancy increased slightly by 0.5 pps to 6.00%
14.4% over the quarter. The prime vacancy rate
increased by 1.0 pps Q-o-Q to 12.7% and 5.50%
secondary vacancy rate fell by -0.7 pps Q-o-Q to
5.00%
19.0%. Secondary stock in Macquarie Park is
limited, w ith only 208,000 sqm of secondary grade 4.50%
stock out of its total area of 746,116 sqm.
4.00%
4.75-5.38% Prime Yield Range

Yields: Source: JLL Research as at 2Q22
Over the quarter, the prime yield range remained
unchanged at 4.75%-5.38%.

Melbourne CBD Australia | Q2 2022
Net absorption totalled -10,650 sqm and was negative Market Balance
for a second consecutive quarter. How ever, demand for
prime-grade stock continued to remain resilient, as the flight- 400,000 16%
to-quality theme continues to remain robust. 14%
300,000
No projects reached practical completion in the CBD 12%
200,000
over 2Q22. Tw o projects are projected to complete in 4Q22 10%
(28,911 sqm). Five new projects (153,690 sqm) and four
100,000 8%
w hole building refurbishments (79,875 sqm) are currently
under construction and expected to be complete by mid- 6%
-
2024. 4%
-100,000
CBD investment activity recorded no settled 2%
transactions over the quarter, with m ore than $1bn -200,000 0%
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
expected to settle in 3Q22. This w ill be predominantly led
by Charter Hall’s 50% acquisition in Southern Cross Tow ers,
w ith an 100% net price of approximately AUD $2 billion. Net Increase in Stock (sqm) Net Absorption (sqm)
Other pending sales include: 330 Collins St, 120 Collins St
Vacancy Rate (%)
and 225 King w hich we expect to settle for a combined total
of AUD $600 million. Source: JLL Research
Source: as at Q2as2022
JLL Research at 2Q22
CBD prim e net face rents recorded no significant growth

over the quarter. Incentives remained stable at an average Gross Effective Rent
of 38.6% as effective rents also remained stable, w ith prime
gross effective rents maintaining an average of AUD $519 $600
per sqm pa.
-10,650 sqm $500
Net absorption:
The Melbourne CBD recorded negative net absorption for a $400
second consecutive quarter, totalling -10,650 sqm over
2Q22. Negative quarterly demand w as driven by large
tenants (>1,000 sqm), w ith tranches of new sub-lease $300
space, consolidations and contractions broadly affecting
demand. Large occupier contractions accounted for all of
$200
the negative net absorption activity (-10,832 sqm), indicating
a minor positive contribution from the sub 1,000 sqm tenant
cohort (182 sqm). Prime Gross Effective Rent $ sqm p.a.
15.0% Source: JLL Research as at Q2 2022
Vacancy
Melbourne’s CBD headline vacancy increased over the
quarter, to now sit at 15.0%, w hich remains w ell above the Prime Yield Range
10-year quarterly average of 8.7%. Prime vacancy
decreased to 15.1% as the secondary market increased
9.0%
(1.0%) to 14.6% over the quarter. Sublease vacancy
decreased (0.30 pps) to now sit at 2.3%, as the direct 8.5%
market increased to 12.6%, the highest level recorded in the 8.0%
direct market since 1998. 7.5%
7.0%
229,350 sqm 6.5%
Construction: 6.0%
There are currently five new projects under construction, 5.5%
expected to deliver a total of 153,690 sqm of NLA by mid-
5.0%
2024 (44% pre-leased). Additionally, there are four w hole
building refurbishments that are expected to bring back 4.5%
79,875 sqm (7.5% pre-leased) of stock to the market by 4.0%
mid-2023.
4.25%-5.13% Source: JLL Research as at 2Q22

Yields:
Prime CBD yields remained stable over the quarter at a
range of 4.25%-5.13%, as secondary yields softened 25 bps
on the upper end to now sit a range of 4.50%-5.50.

Melbourne Fringe Australia | Q2 2022
The Fringe market continued to outperform CBD Market Balance

dem and for a ninth consecutive quarter. The Fringe 170,000 20%
market recorded positive net absorption of 10,931 sqm over
2Q22, w ith annual absorption now totalling 102,384 sqm.
15%
JLL are continuing to see tenant preference to new stock or 120,000
existing premium quality office space.
10%
70,000
Three projects reached completion over the quarter. The
Fringe delivered 13,112 sqm of new stock into the market 5%
(44% pre-committed). Completions over 2Q22 include: 88 20,000
Langridge Lanes (6,910 sqm), 34 Eastern Road (3,890 sqm) 0%
and 48-50 Gipps Street (2,312 sqm). -30,000
-5%
Fringe investment volumes moderated over 2Q22. Tw o
sales transacted for a combined value of AUD $44.7 million, -80,000 -10%
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
bringing the 12-month investment volume to AUD $654.5
million (across 9 transactions). The largest transaction w as
the sale of 33-41 Agnes Street, w hich transacted for AUD Net Increase in Stock (sqm) Net Absorption (sqm)
$22.68 million, follow ed by the sale of 1 Clarendon Street for Vacancy Rate (%)
AUD $22.0 million. Source: JLL Research as at 2Q22
Prim e face rents slightly increased as secondary face

rents remained stable. Prime gross face rents increased
(0.5%) over the quarter to an average of AUD 642 per sqm Gross Effective Rent
pa, as prime incentives remained unchanged at 31.7%. As a
result, effective rents slightly increased (0.4%) to an average $500
of AUD 450 per sqm pa.
$450
$400
15.9% $350
Vacancy:
Fringe headline vacancy remained unchanged at 15.9%, $300
w hich remains the highest vacancy level recorded in the
Fringe market since JLL began tracking this market 20-years $250
ago. This is on the back of eight consecutive quarters of
double-digit vacancy numbers. Prime vacancy outperformed $200
the secondary market, totalling 13.3% and 17.9% Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22
respectively.
10,930 sqm Source: JLL Research as at 2Q22
Net absorption:
The Melbourne Fringe market recorded another positive net
absorption result for a sixth consecutive quarter, totalling Prime Yield Range
10,930 sqm. This w as largely driven by the small tenant
9.00%
cohort (<1,000 sqm), as expansion and relocation activity
accounted for the majority of this positive leasing momentum. 8.50%
8.00%
7.50%
221,196 sqm 7.00%
Construction: 6.50%
There are 19 projects currently under construction in the
Fringe, w hich is on-track to deliver 221,196 sqm by mid-2024. 6.00%
The largest project of w hich is the 35,000 sqm development at 5.50%
645-699 Elizabeth Street, Carlton, w hich is expected to be 5.00%
complete in 3Q23.
4.50%
4.00%
4.63%-5.25%
Yields:
Fringe prime yields softened 12.5 bps on the upper end to
now sit at a range of 4.63%-5.25%, as secondary yields Source: JLL Research as at 2Q22
remained stable at 5.00%-5.75%.

Melbourne S.E.S. Australia | Q2 2022
The S.E.S m arket continued subdued yet positive demand Market Balance
over the quarter. Net absorption totalled 1,796 sqm over
2Q22, w ith annual net absorption now totalling 18,166 sqm. 100,000 14%
The subdued quarterly result w as predominately a result of
minimal large tenant (>1,000 sqm) leasing activity. Demand 80,000 12%
for prime-grade assets continued to remain a strong theme 60,000
w ithin the S.E.S market. 10%
40,000
Three projects reached practical completion in the S.E.S 8%
20,000
over the quarter, delivering 25,187 sqm of NLA. Four new
6%
projects are set to be complete in the follow ing 12-months, -
w hich is estimated to deliver 14,955 sqm of NLA into the 4%
market. -20,000
-40,000 2%
Sales volum es in the S.E.S totalled AUD 256.7 m illion,
outperforming both the CBD and Fringe m arket. The -60,000 0%
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
largest transaction over the quarter w as the sale of the GSO
Building in Dandenong, w hich transacted for AUD $165
million. Investment into the S.E.S market over the past 12- Net Increase in Stock (sqm) Net Absorption (sqm)
months now totals AUD $520.7 million Vacancy Rate (%)
The rental m arket remained largely unchanged
throughout the S.E.S. Prime gross effective rents decreased
(-0.8%) to an average of AUD 363 per sqm pa, as prime net Gross Effective Rent
face rents remained unchanged at AUD 400 per sqm pa.
Prime incentives increased to 28.0% as secondary incentives $400
remained unchanged at an average of 27.3%.
$350
11.7%
$300
Vacancy:
S.E.S headline vacancy increased (0.8 pps) over the quarter to
11.7%.This vacancy figure is above the 10-year quarterly $250
average of 10.6%. The spread betw een prime and secondary
vacancy narrowed over the quarter, with prime totalling 11.7%
and secondary 11.8%. $200
1,796 sqm Prime Gross Effective Rent $ sqm p.a.
Net absorption: Source: JLL Research as at 2Q22
The S.E.S recorded a sixth consecutive quarter of positive net
absorption, totalling 1,796 sqm, w hich remains below the 10-
year quarterly average of 5,417 sqm. Occupier demand and Prime Yield Range
leasing activity as a result of pent-up demand continued the
positive net absorption in the S.E.S market overall. 10.00%
Throughout 2Q22, the continuing theme of tenant demand for
prime-grade space remained evident. 9.00%
13,815 sqm 8.00%
Construction: 7.00%
There w ere three office completions over 2Q22, delivering
25,187 sqm of NLA into the market. The new ly completed
6.00%
EastCo building in Ringw ood (13,000 sqm) w as the largest
project w hich completed over the quarter. There are three
projects currently under construction (13,815 sqm), w ith pre- 5.00%
commitments totalling 58%, the largest of w hich was the
refurbishment of the Chadstone Place building in Malvern. 4.00%
4.75%-5.75% Source: JLL Research as at 2Q22

Yields:
S.E.S. prime yields softened 12.5 basis points (bps), to now sit
at a range of 4.75%-5.75% (midpoint of 5.25%), w hich is
largely a result of general market sentiment tow ards rising
interest rates and recent economic uncertainty. Secondary
yields remained unchanged at a range of 5.00%-6.25%.

Norwest Australia | Q2 2022
The Norw est office market recorded a negative net Market Balance
absorption of -1,400 sqm over the quarter.
There were no completions recorded over 2Q22. The 20,000 15%
next completion is The Bond, w hich is expected to be
completed by the end of 2022. 15,000
10%
Prim e gross effective rents remained unchanged at AUD 10,000
sqm
336 per sqm per annum, and fell by -0.6% Y-o-Y.
5,000
One sales transaction greater than $5 m illion was 5%
recorded in the Norwest office market over 2Q22. 0
Centuria purchased a 53% interest in The Bond (8 Elizabeth
Macarthur Drive, Bella Vista), for $66.2 million from -5,000 0%
developer Mulpha Group.
2013
2018
2019
2020
2021
2014
2015
2016
2017
2022
Net Absorption (sqm)

-1,400 sqm
$355
Net absorption: $350
The Norw est office market recorded negative net
absorption of -1,400 sqm over 2Q22. The key driver of $345
the decline w as driven by vacating 2 Burbank Place
(1,015 sqm) and relocating to existing space in $340
Parramatta Square.
$335
$330
9,200 sqm $325

Jun-20 Dec-20 Jun-21 Dec-21 Jun-22
Construction:
There w ere no completions recorded in 2Q22. The next
project expected to complete is The Bond, w hich is due for Source: JLL Research as at 2Q22
completion in the latter half of 2022. Upon completion the
project w ill add a further 9,200 sqm of office space to the
Norw est office market.
Prime Yield Range
9.00%
8.00%
6.0% 7.00%
6.00%
Vacancy:
The Norw est office market headline vacancy rate 5.00%
increased to 6.0%. The prime vacancy increased by 0.7
pps to 7.1% over the quarter. 4.00%
5.00-6.00% Prime Yield Range

Yields:
The prime yield range remained stable at 5.00%-6.00%
over the quarter.

North Sydney Australia | Q2 2022
North Sydney recorded 3,000 sqm of net absorption

over the quarter. This w as largely driven by demand for Market Balance
secondary grade stock as large occupiers largely vacated
the market.
120,000 25%
There were no completions or w ithdrawals over 2Q22. 100,000
Five projects are under construction in North Sydney, 20%
totalling 93,800 sqm. These projects have expected 80,000
completion dates betw een 2023 and 2024. Tw o more
60,000 15%
projects have had development plans approved over the
quarter totalling 86,000 sqm. 40,000
20,000 10%
The North Sydney investment market was active over
2Q22, w ith sales totalling AUD 424.3 m illion, bringing
-
1H22 total sales volumes to AUD 490.6 m illion. The 5%
largest transaction w as GPT’s purchase of 153-157 Walker -20,000
Street for AUD 185.5 million from Marprop (50%) and GLL
(50%). -40,000 0%
2017 2018 2019 2020 2021 2022
North Sydney prime gross effective rents declined by Total Completions (sqm) Net Absorption (sqm)
0.2% over the quarter and have increased by 0.7%
Vacancy Rate (%)
annually. This w as primarily driven by prime gross face
rents rising to 36.7% in 2Q22.
$800
17.1%
Vacancy:
Softer demand for prime grade space in the North $600
Sydney market has resulted in the prime vacancy rate
increasing to 17.6% over 2Q22. The secondary vacancy
rate decreased to 16.7% on the back of stronger
demand. As a result, the headline vacancy rate
decreased over the quarter to currently stand at 17.1%. $400
2,993 sqm $200

Net absorption:
We recorded 2,993 sqm of net absorption over 2Q22, Prime Gross Effective Rent $ sqm p.a.
driven by stronger demand for secondary stock. Secondary Gross Effective Rent $ sqm p.a.
Demand from large occupiers was softer this quarter,
such as Victory Offices vacating 2,414 sqm at 100 Source: JLL Research as at 2Q22
Mount Street. On the positive side, Galderma leased
1,727 sqm at 1 Denison Street, vacating 1,522 sqm in
Belrose. Prime Yield Range
7.00%
93,800 sqm
Construction:
There are currently five projects under construction in 6.00%
North Sydney totalling 93,800 sqm (equivalent to 10.2%
of total stock). The mixed-use development at 88
Walker Street is on track for completion in 1Q23, w hile
the Blue and William is scheduled for completion in
5.00%
2Q23. This project w ill deliver 14,150 sqm of
commercial office space.
4.00%
4.50-5.25% 3.00%
Yields:
North Sydney prime yields remained stable at 4.50%-
5.25%. The North Sydney prime midpoint yield is 31 bps Source: JLL Research as at 2Q22
higher than the Sydney CBD prime midpoint yield.

Parramatta Australia | Q2 2022
Positive net absorption of 11,800 sqm w as recorded in Market Balance

the Parramatta office m arket in 2Q22.
8 Parram atta Square completed in 2Q22, adding 50,000 120,000 20%
sqm to the market. The next completion in the Paramatta 100,000
office market w ill be 85 Macquarie Street, w hich will add
10,000 sqm once completed in 4Q22. 80,000 15%
Prim e gross effective rents were stable over the quarter 60,000
sqm
and dow n -3.2% Y-o-Y in 2Q22 to $407 per sqm per annum. 40,000 10%
Effective rents remain 22% below their record high before
the onset of COVID-19.
20,000
0 5%
One sale w as recorded in 2Q22. Australian Unity
Diversified Property Fund sold 20 Smith Street, Parramatta -20,000
to an undisclosed buyer for AUD 87.3 million. -40,000 0%
2017 2018 2019 2020 2021 2022

Vacancy Rate (%)

$550
$500
$450
11,800 sqm $400
Net absorption:
The Parramatta office market recorded solid demand $350
over 2Q22, w hich was largely driven by tenants move $300
into new space at 8 Parramatta Square. Westpac
moved into 20,000 sqm at 8 Parramatta Square, $250
vacating 9,585 sqm at 75 and 80 George Street. $200
Gamuda leased 2,648 sqm at 60 Station Street,
vacating 208 sqm in North Sydney.

Construction:
8 Parramatta Square completed in 2Q22, adding 50,000
sqm of office space to the market. Tw o tracked projects
are now under construction, with the next completion at
85 Macquarie Street (10,000 sqm) w hich is expected to
complete in 4Q22. 114 Charles Street, Parramatta is Prime Yield Range
due to complete in 2026 and w ill include 5,354 sqm of
office space. 8.00%
7.50%
7.00%
18.3% 6.50%
The significant increase in stock over the quarter saw the 5.50%
headline vacancy rate increased by 3.1 pps to 18.3%. The
prime vacancy rate increased by 3.2 pps to 17.9% w hile the 5.00%
secondary vacancy rate increased to 3.0 pps to 18.9% over 4.50%
the quarter.
4.00%
4.63-5.63%
Yields:
Prime Yield Range
The prime yield range remained stable at 4.63%-5.63%
w ith a midpoint yield of 5.13%.

Perth CBD Australia | Q2 2022
Dem and conditions on the up in 2Q22. The centralisation Market Balance

of tenants from outer suburban markets as w ell as new
business entrants into the Perth market w ere significant
contributors to net absorption in 2Q22.
150,000 25%
An uptick in the short-term supply pipeline. The existing
construction pipeline is strong w ith four projects under 20%
construction totalling 88,800 sqm. 100,000
15%
One m ajor office sale (≥ AUD 5.0 m illion) transacted 50,000 10%
during 2Q22 totalling AUD 16.1 m illion. Over the last 12
months, CBD office sales totalled AUD 378.1 million across 5%
three transactions. This figure sits below the 10-year average -
of AUD 646.6 million. 0%
-50,000
The WA resources industry has remained resilient -5%
through the COVID-19 pandemic, providing support to
economic conditions. With a strong pipeline of resource -100,000 -10%
projects approved, demand for office space is likely to be led 12 13 14 15 16 17 18 19 20 21 22
by the mining and professional services sector.
Vacancy Rate (%)
900
20.1% 800
Vacancy:
The Perth CBD overall vacancy rate increased by 0.4 700
pps over the quarter to 20.1%, despite quarterly net
absorption totalling 2,700 sqm. The increase in the 600
overall vacancy rate w as driven by the completion of
refurbished stock over the quarter. 500
400
300
2,700 sqm 200
Net absorption:
Net absorption totalled 2,700 sqm in the Perth CBD
during 2Q22, the third consecutive quarter of positive Prime Gross Effective Rent $ sqm p.a.
net absorption. Likew ise, all other five monitored
Australian CBD office markets recorded positive net Secondary Gross Effective Rent $ sqm p.a.
absorption over the quarter. Source: JLL Research as at 2Q22
Prime Yield Range

88,800 sqm
Construction:
There w ere no major completions recorded during 9.0%
2Q22, w ith the reintroduction of refurbished stock
(13,174 sqm at 190 Hay Street) the only supply
8.0%
addition over the quarter. The short to medium-term
supply pipeline remains elevated w ith four
developments currently under construction. 7.0%
6.0%
5.00-7.50%
Yields: 5.0%
Average Perth CBD prime-grade equivalent yields
were unchanged over the June quarter, ranging
betw een 5.00%-7.50%. Secondary yields were als o
4.0%
stable, ranging between 6.50%-9.50%. The impact of
global rise in interest rates, increasing cost of debt as
well as rising inflation will impact investor confidence,
leading to a re-pricing of office yields moving forward. Source: JLL Research as at 2Q22

West Perth Australia | Q2 2022
West Perth office demand im proves. Occupier activity in Market Balance

the West Perth office market has recorded a significant
uplift over 2Q22, w ith the centralisation of tenants from 20,000 25%
other fringe suburban markets and new business entrants
dominating take-up activity over this period. Tenants 20%
operating w ithin the mining and professional services 10,000
sectors remain key office take-up players in the West Perth 15%
office market.
- 10%
A lim ited supply pipeline is currently present in the
West Perth market. With a significant amount of quality -10,000 5%
space currently available, the prospect for new
developments is unlikely in the short term. Any new office 0%
space entering the market is likely to come through mixed- -20,000
-5%
use projects, or w ould otherwise require significant levels of
pre-commitment. -30,000 -10%
There were no major office transaction (≥AUD 5.0
12 13 14 15 16 17 18 19 20 21 22
m illion) recorded in 2Q22. During the last 12 months,
West Perth office sales totalled AUD 29.9 million across
three transactions. This figure sits below the 10-year Vacancy Rate (%)
average of AUD 63.9 million.

700
600
500
21.0% 400
Vacancy:
West Perth's vacancy rate decreased by 0.4 percentage 300
points (pps) over the June quarter to 21.0% as leasing
activity recorded a significant improvement. Over the 200
last 12 months, the vacancy rate has decreased by 1.0
(pps). Vacancy in West Perth remains largely
concentrated in secondary buildings, accounting for
approximately 70% of total vacancy.
1,800 sqm
Net absorption: Source: JLL Research as at 2Q22
Net absorption over 2Q22 totalled approximately 1,800
sqm, driven by an improvement in leasing demand
w ithin prime grade assets. Prime Yield Range
8.0%
7.0%
2,700 sqm
Construction:
There is currently one major office project under
6.0%
construction in the West Perth market. This is the
construction of a 6-storey building at 30-34 Ord Street
totalling 2,700 sqm. The West Perth office market has 5.0%
recorded no significant supply completions over the
last 12 months.
4.0%
6.75-7.75%
Yields:
Both prime and secondary mid-point yields were unchanged
over the quarter. Prime mid-point yields have been stable Source: JLL Research as at 2Q22
since 1Q20 after compressing over the four-year period
betw een 2015 to 2019.

Sydney CBD Australia | Q2 2022
Net absorption totalled 2,400 sqm over 2Q22, w hich is Market Balance
the first quarter of positive demand in 2022. This w as
driven by demand for prime stock, w ith 4,700 sqm of prime 200,000 14%
net absorption over the quarter.
12%
The opening of Quay Quarter Tower added 88,000 of 100,000
premium stock in the Core Precinct in 2Q22. The 10%
w ithdrawal of 33 Alfred Street and 333 Kent Street for
refurbishment has removed 41,800 sqm of stock from the
- 8%
market.
-100,000 6%
Investment activity over 2Q22 totalled AUD 410 m illion,
bringing the HY22 total to AUD 2.78 billion. Investment 4%
markets w ere quieter this quarter amidst an uncertain -200,000
financial environment. HY22 investment volumes are at their 2%
highest since 2019 w here sales totalled AUD 2.92 billion.
The largest transaction w e recorded in 2Q22 w as SC Capital -300,000 0%
Partner’s AUD 210 million sale of 4-6 Bligh Street to 2017 2018 2019 2020 2021 2022
Holdmark. Total Completions (sqm) Net Absorption (sqm)
Vacancy Rate (%)
Prim e gross effective rents increased by 2.0% over the
quarter (1.3% y-o-y). Face rents increased by 1.6% and
incentives fell slightly to 34.2%.
$1,200
$1,000
13.0%
Vacancy: $800
The prime vacancy rate has increased to 12.9% over the
quarter w hile the secondary vacancy rate decreased to $600
13.2%. Overall, the headline vacancy rate has increased to
13.0%. $400
2,421 sqm $200

Net absorption:
We recorded positive net absorption of 2,421 sqm over Prime Gross Effective Rent $ sqm p.a.
2Q22. Sublease vacancy increased to 107,475 sqm (2.1%
of total stock) over the quarter as large corporates offered
space for sublease to the market. Major sublease additions Source: JLL Research as at 2Q22
include Lendlease offering 5,188 sqm for sublease at 300
Barangaroo Avenue and Santos subleasing 4,891 sqm at 1
Bligh Street. Prime Yield Range
256,700 sqm 6.00%
Construction:
There are currently nine projects under construction across
the CBD totalling 256,700 sqm - equivalent to 4.9% of
current total stock. These developments are expected to be 5.00%
delivered betw een 2022 and 2024 and have achieved an
aggregated pre-commitment rate of 37%. The majority of the
developments are located in the Core precinct (67% in terms
of total sqm under construction). We are tracking nine 4.00%
projects (369,600 sqm) w ith approved development plans
w ith potential delivery dates betw een 2024 and 2027.
3.00%
4.13-4.75% Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22
Yields:
The prime yield range remained stable this quarter at
4.13%-4.75%. Secondary yields also did not change over Source: JLL Research as at 2Q22
the quarter, remaining at 4.50%-5.00%

Sydney Fringe Australia | Q2 2022
The Sydney Fringe market recorded positive net absorption Market Balance
of 7,000 sqm . Large tenant moves included FSA Group moving
into 1,440 sqm at 1 Oxford Street, relocating from 56-70 Phillip 80,000 10%
Street in the CBD.
There were no withdrawals or major office completions 60,000 8%
recorded over the quarter. Two previously untracked buildings
w ere added to stock w ith a total office area of 4,200 sqm. There
are currently three projects under construction totalling 10,200 40,000 6%
sqm
sqm.
Prim e gross effective rents increased by 0.6% Q-o-Q and 20,000 4%
decreased by 5.1% Y-o-Y to reach $559 over the quarter.
Secondary gross effective rents were stable over the quarter at - 2%
$479, w hich reflects a decline of -6.5% Y-o-Y.
2017 2018 2019 2020 2021 2022
Four sales totalling AUD 156.0 m illion w as recorded over -20,000 0%
the quarter. The largest sale was 55 Regent Street which was
sold by Parangool to MKH Properties for AUD 60.0 million. Total Completions (sqm) Net Absorption (sqm)
Vacancy Rate (%)
$700
$600
7,002 sqm $500

Net Absorption: $400
The Sydney Fringe market recorded positive net absorption
of 7,002 sqm. This increase w as largely driven by stronger $300
demand for secondary stock, contributing to 8,600 sqm of
negative net absorption. $200
$100
Construction:
There w ere no new completions this quarter, w hile tw o
previously untracked buildings totalling 4,200 sqm w ere Source: JLL Research as at 2Q22
added to stock. As such, the total stock of office space in
the Fringe market increased 4,200 sqm to 1.1 million sqm.
We are tracking three projects currently under construction
w hich are due to complete over the second half of 2022 and
the first half of 2023, w hich will potentially add 10,200 sqm
Prime Yield Range
of office space to the market.
7.00%
8.7%
Headline vacancy decreased 0.3 pps to 8.7% over the
quarter. Vacancy among prime stock rose to 8.8%,
w hile the secondary market saw vacancy fall to 8.5%.
5.00%
4.63-5.13% 4.00%
Yields: Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22
The prime yield range remained stable over the
quarter and currently stands at 4.63% - 5.13%.

St Leonards Australia | Q2 2022
St Leonards recorded -43 sqm of net absorption over

2Q22, driven by negative net absorption among Market Balance
secondary grade stock. This brings total net absorption for
1H22 to -340 sqm. 40,000 25%
One com pletions and two withdrawals w ere recorded in 20%

St Leonards over 2Q22. Total stock in St Leonards is now
344,000 sqm, w ith one assets currently under construction 20,000
located at 558 Pacific Highw ay. This new developments are 15%
expected to add 16,700 sqm of office space to the St
Leonards market in 2023.
10%
-
There were no major sales transactions recorded in the
St Leonards market over 2Q22. 5%
Prim e gross effective rents in St Leonards increased
0.5% this quarter (-5.5% y-o-y). This w as driven by face -20,000 0%
rents rising by 0.5%, w ith prime incentives remaining stable 2018 2019 2020 2021 2022
over the quarter. Total Completions (sqm) Net Absorption (sqm)
Vacancy Rate (%)

$600
20.8% $500
Vacancy:
An improvement in demand for prime grade stock drove the
St Leonards prime vacancy rate to decrease to 21.8%. $400
Conversely, the secondary vacancy rate rose slightly to
20.2%. The headline vacancy rate decreased to 20.8% - the
low est result since 3Q21. $300
-43 sqm $200

Net absorption:
We recorded -43 sqm of net absorption over 2Q22. Stronger Prime Gross Effective Rent $ sqm p.a.
demand for prime stock from small tenants w as Secondary Gross Effective Rent $ sqm p.a.
counterbalanced by small tenants vacating secondary stock.
This net absorption result w as St Leonards’ strongest Source: JLL Research as at 2Q22
quarter of demand since 3Q20.
Prime Yield Range
16,700 sqm
8.00%
Construction:
St Leonards’ only development under construction is
the mixed-use development at 558 Pacific Highw ay,
comprising of 14 levels of commercial space (16,700 7.00%
sqm), 654 dw ellings and 10,500 sqm of retail space. It
is expected to complete in early 2023.
6.00%
5.00%
5.00-5.50%
Yields: 4.00%
The St Leonards prime yield range w as stable over Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22
the quarter at 5.00%-5.50%. The secondary yield
range w as also stable this quarter, remaining at Source: JLL Research as at 2Q22
5.25%-5.75%.

Sydney Olympic Park Australia | Q2 2022
& Rhodes
Positive net absorption of 7,300 sqm w as recorded in 2Q22,
w hich was driven by several large tenants leasing space. Market Balance
There were no completions or w ithdrawals recorded in 25,000 25%
2Q22, therefore total stock in the Sydney Olympic park/Rhodes
20,000
market remained unchanged at 294,300 sqm. 20%
15,000
Prim e gross effective rents declined to AUD 380, reflecting a
decline of -4.4% Y-o-Y. Prime incentives rose to 34.9% over the 10,000 15%
sqm
quarter, w hich is the highest recorded rate since JLL began 5,000
tracking the market. 10%
0
No transactions greater than AUD 5 m illion were recorded in
-5,000
the Sydney Olym pic Park/Rhodes market in 2Q22. The last 5%
transactions occurred in 2Q21. Grow thpoint Properties acquired -10,000
100% interest in 11 Murray Rose Avenue, Sydney Olympic Park
-15,000 0%
from Charter Hall for AUD 52.0 million.
2017 2018 2019 2020 2021 2022
Vacancy Rate (%)
7,250 sqm Gross Effective Rent

Net Absorption: $405
The Sydney Olympic Park/Rhodes market $400
recorded positive net absorption of 7,250 sqm in
2Q22, w hich is driven by several large tenants $395
take-ups (>1,000 sqm) and strong demand for $390
prime grade stock. The largest move w as CBA
leasing 5,818 sqm at 10 Daw n Fraser Avenue, $385
Sydney Olympic Park. $380
$375
$370
$365
0 sqm
Prime Gross Effective Rent
Construction:
There w ere no completions recorded in 2Q22. Therefore, Source: JLL Research as at 2Q22
total stock remained unchanged at 294,300 sqm. Hew lett
Packard’s headquarters, located at 410 Concord Avenue,
Rhodes, remains the only project w ith development plans
submitted in the pipeline tracked by JLL. Prime Yield Range
8.00%
18.1% 7.50%
7.00%
Driven by the positive net absorption of 7,250 sqm,
headline vacancy contracted by 2.5 pps to 18.1% over
6.00%
the quarter. In particular, the vacancy rate of Sydney 5.50%
Olympic Park office precinct declined by 3.2 pps over the 5.00%
quarter to 5.9%.
4.50%
4.00%
5.00-5.75%
Prime Yield Range
Yields:
The prime yield range remained stable at 5.00%-5.75% Source: JLL Research as at 2Q22
over the quarter.

Sydney South Australia | Q2 2022
Negative net absorption of -4,500 sqm w as recorded in Market Balance

2Q22, as a result, the headline vacancy rate increased by 0.5
pps Q-o-Q to 16.6% over the quarter.
40,000 30%
No projects completed in 2Q22. 1-5 Chalmers Crescent,
Mascot is under construction and is expected to complete in
20,000 20%
1Q24. 51% of office space has been pre-committed.
sqm
Prim e gross effective rents decreased by -1.3% to AUD 407 0 10%
per sqm per annum over the quarter, and by 0.4% Y-o-Y.
No transaction over AUD 5 m illion w as recorded over the -20,000 0%
quarter. The transaction w ith the greatest value over the
previous 12 m onths was, Gateway 241, located at 241A -40,000 -10%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
O'Riordan Street, Mascot. The asset w as sold by Fort Street
Real Estate Capital to Savills Investment Management for AUD
151.5 million in 3Q21. Net Increase in Stock (sqm) Net Absorption (sqm)
Vacancy Rate (%)

-4,500 sqm $500
Net absorption:
Negative net absorption of -4,500 sqm w as recorded in the $400
Sydney South office market in 2Q22. The grow th in
negative result w as driven by small tenant (<1,000sqm) $300
consolidation activity.
$200
$100
$0
8,500 sqm Jun-20 Sep-20Dec-20Mar-21 Jun-21 Sep-21Dec-21 Mar-22 Jun-22

Construction: Secondary Gross Effective Rent $ sqm p.a.
The total amount of office stock in the South Sydney office
market fell by 3,900 sqm and no completions w ere recorded
over 2Q22. 1-5 Chalmers Crescent, Mascot (8,521 sqm)
has commenced construction and is expected to complete
in 1Q24. 51% of the space has been pre-committed.
Prime Yield Range

8.00%
7.50%
16.6%
7.00%
As a result of the negative demand result, headline
vacancy rose by 0.5 pps to 16.6% in 2Q22. 6.00%
5.50%
5.00%
4.75-5.50%
Prime Yield Range
Yields: Source: JLL Research as at 2Q22
The prime yield remained unchanged at 4.75-5.50%
w ith a midpoint yield of 5.13% in 2Q22.

JLL Australia National Office Market Overview 2022

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JLL Australia National Office Market Overview 2022

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Australia | Q2 2022

Weighted Australian CBD prime gross

Australian office investment activity totalled

Office market overview 1

We have released our 2Q22 results on the National CBD office

Three assets reached practical completion over 2Q22 across

Australian CBD prim e gross effective rents (PGER) increased

Dem and recovery could be hindered by w eaker economic

AUD 1.72 14.0%

Australian Office Sales Positive demand w as recorded in the Sydney,

Office market overview 2

Gross Effective Rent

-11,823 sqm 100

Prime Yield Range

Office market overview 3

Strong positive net absorption recorded over the quarter

Source: JLL Research as at 2Q22

Office market overview 4

Tenant hesitancy begins to rise due to uncertain m acro- Market Balance

Office market overview 5

Headline vacancy increased to 6.1% in 2Q22, this is the Market Balance

Source: JLL Research as at Q2 2022

Gross Effective Rent

-14,000 sqm $350

Prime Gross Effective Rent $ sqm p.a.

Prime Yield Range

Office market overview 6

Chatswood recorded negative -500 sqm of net Market Balance

Gross Effective Rent

-483 sqm $500

Office market overview 7

The Macquarie Park office market recorded a negative Market Balance

Gross Effective Rent

4.75-5.38% Prime Yield Range

Office market overview 8

CBD prim e net face rents recorded no significant growth

-10,650 sqm $500

4.25%-5.13% Source: JLL Research as at 2Q22

Office market overview 9

The Fringe market continued to outperform CBD Market Balance

Prim e face rents slightly increased as secondary face

Office market overview 10

13,815 sqm 8.00%

4.75%-5.75% Source: JLL Research as at 2Q22

Office market overview 11

Source: JLL Research as at 2Q22

Gross Effective Rent

9,200 sqm $325

5.00-6.00% Prime Yield Range

Source: JLL Research as at 2Q22

Office market overview 12

North Sydney recorded 3,000 sqm of net absorption

Gross Effective Rent

2,993 sqm $200

Office market overview 13

Positive net absorption of 11,800 sqm w as recorded in Market Balance

Net Increase in Stock (sqm) Net Absorption (sqm)

Gross Effective Rent

15,400 sqm Prime Gross Effective Rent $ sqm p.a.

Office market overview 14

Dem and conditions on the up in 2Q22. The centralisation Market Balance

Source: JLL Research as at 2Q22