As office property demand remains strong in 2023, Brisbane will remain a key hub for office space.
According to the recently released Property Council of Australia’s January 2023 Office Market Report, demand for office space in the city centre of Brisbane has shot up to more than four times the historical average. In the six months leading up to January 2023, the number of empty spaces in Brisbane’s central business district (CBD) went from 13.9% to 12.9%. This happened because new businesses kept coming into the market and existing businesses took up more space.
Even though Premium Grade still has the lowest vacancy rate (5.9%), the demand for space in lower grade assets shows that new tenants are moving into the city from their homes or suburban offices and taking up space that was previously empty. Most of the positive demand in the Brisbane CBD came from a rise in companies looking for A and B Grade office space.
Brisbane’s Fringe market also saw a small drop in the number of empty spaces, from 15.4% to 15.3% over the six-month period, with net absorption of 38,664m2 over the past six months.
Leasing activity is expected to remain steady throughout Brisbane’s metropolitan area, and another recently released report states that 2023 is the year for tenants.
Brisbane offers affordable office spaces outside of the CBD that caters to businesses on tighter budgets. Suburbs such as New Farm and South Brisbane have seen significant growth in office leasing activity as they provide lower rentals than inner-city areas while still offering convenient access to amenities and transport links.
Office fitouts are also expected to remain popular over the next few years, with office owners investing in their premises to create a modern and productive workplace for their employees. Business owners in Brisbane are taking advantage of the latest office design trends, such as biophilic office design, which incorporates natural elements into the office environment to provide greater comfort and well-being for staff.
Brisbane’s outlook for office property is positive, with strong demand expected from office tenants throughout 2023 and beyond.
Additionally, office properties in Brisbane are expected to benefit from the city’s expanding infrastructure network and ongoing developments, such as the Cross River Rail project. This will create further economic opportunities for businesses located in office space around Brisbane, making it a lucrative investment choice. With these forecasts, office property investors in Brisbane can look forward to a bright outlook for the upcoming year.
To find out more about office property in Brisbane, contact McGees Brisbane today. They can provide expert advice and guidance to ensure you make the best decisions for office rental or fitouts in 2023.