13.97% Australia’s total office vacancy edged higher overall, (o[U(mmomsxeyu nom aclars] a1 contraction around the country DUT ZC AGC Uo EeThe Australian office market continues to recover slowly however we have started to experience stronger themes across the key CBD markets. Interesting to see the PCA data released today, despite upward pressure on vacancy rates, we are definitely seeing a strong theme of a two-tiered market developing with Prime Grade assets in core locations outperforming. With more stability across the financial markets, lower inflation figures and continuing focus on productivity, we see a positive year ahead with some volatility in the second half of the year. eRe tase Head of Office Investor Leasing, PacificThe return to office continued to improve in Australia over the course of 2023. CBRE Research estimates that physical occupancy in Australian CBD’s improved to 70% of pre-COVID levels in Q3, up from 55% a year earlier. Major corporates are working harder to encourage people back into the office due to the collaboration and productivity benefits. BRB sKCoule se Head of Office and Capital Markets Research, AustraliaMa BoN ola -M ut 1h <1 lal ALA -Le KORA K=1 N11) throughout 2023, though conditions have differed across both building grade and geography. The market has been driven primarily by the ongoing flight-to- quality by occupiers and the recovery in office visitation rates in core submarkets. Sydney CBD office visitation rates reached 75% of pre-COVID levels towards the end of 2023, and CBRE expects this figure to peak near 90% over the next 12 months. This recovery is expected to lead to additional leasing FTord Viva leat Masa) <1 Ree IMs eone NSW Head of Office Leasing and North Sydney Managing DirectorThe overall market vacancy for Melbourne in Q4 2023 increased, and we expect it to rise further in H1 2024. when Melbourne Quarter Tower is delivered. Despite the increased vacancy, there has been significant deal activity in terms of volume and average deal size. Ashley Buller VIC Head of Office Investor LeasingDemand for Brisbane office accommodation throughout 2023 was bolstered by strong demand from both state and federal government agencies as well as large corporates, particularly in the mining and consultancy sectors. Both the state and federal governments accounted for over 30% of transacted square metres in the CBD office market, which was propped up by the decanting of 41 George Street, which led to over 30,000sqm of net absorption entering the market. Coen Riddle Director, Office Investor Leasing 1eYar oS TA-9The Gold Coast market maintained low-level vacancy throughout the second half of 2023, supported by no new supply additions. With limited spaces available over 500sqm we have seen minimal new tenants enter the market and most transactional activity has been the shuffling of existing tenants between buildings which may soften the ongoing take-up of current available space. BENE wi (rena Senior Director, Office Investor Leasing, Gold CoastDespite headline vacancy, there is a limited supply of available new, high quality, fitted and non-fitted office space in Adelaide. There is significant activity in backfilling space that has been vacated in favour of new developments, both from a repositioning and deal perspective. PV lane sri y BY k=Le4 Kel PM OLA Lex-M LNY{-1Ko) mm R=x-K L816] South AustraliaThe Perth office market went from strength to strength in 2023 with new enquiry, transaction levels and rental growth all exceeding the previous year. Enquiry levels were at record levels, particularly the H1 2023, with CBD enquiry by volume 23% higher than the five-year average. Demand for office space is anticipated to remain strong in 2024 underpinned by expanding tenants from the mining, engineering and government sectors. SPViNow ao ev) BY k=Le4 Kel PM OLA Lex-M LNY{-1Ko) mm R=x-K L816] Western Australia2023 laid the roadmap for the next few years in the Canberra office market. We experienced the pent-up demand for new ‘premium’ products which are not readily available with a number of tier one corporates approaching the market but opting to hold over or exercise options in anticipation of new supply forecast to land around 2026. Troy Markos BY k=Le4 Kel PM OLA Lex-M LNY{-1Ko) mm R=x-K L816] Australian Capital TerritoryWestern Sydney office leasing activity in H2 2023 was greatly improved compared to H1 2023, during which the largest new lease recorded was only 600sqm. However, overall leasing activity remained greatly reduced in 2023 compared to 2022. We expect to see most tenants continue the downsizing trend that started over the past few years in the hybrid work- from-home model, with relocation largely leading to a reduction in overall space occupied. Greely evaatny BY k=Le4 Kel PM OLA Lex-M LNY{-1Ko) mm R=x-K L816] Western SydneyNational Leasing Market Snapshot EXPLORE MORE CBRE