BING NEWS

A MARKET OF PROMISE RATHER THAN RESULTS.

The first quarter of 2015 has been very active across all sectors, with the general consensus being that enquiry levels have improved. This has not yet been reflected in transactions, with only two buildings in excess of 5,000m2 being leased for this period. We can report that there are numerous properties in the 5,000m2 – 10,000m2 range currently under offer, so the next fortnight will be a significant barometer for the balance of 2015. Importantly the result of these negotiations will have a significant impact on rents and incentives in this sector of the market, which has been subdued for approximately 18 months. A sharp uplift in take-up could result in a dramatic fall in incentives as supply levels diminish. This lack of supply comes as a result of almost non-existent speculative development in this size range in recent times. Our advice to occupiers would therefore be to take advantage of the attractive deals on offer as they are unlikely to last as developers and owners grow in confidence about market conditions.

The most constrained sector of the market is by far the lack of owner-occupier opportunities available in the market at a price level of 10 – 15% below that of a new build. This is particularly relevant to the buildings in the $3 – $8 million range. We would welcome any listing opportunities in this sector of the market to respond to a growing book of enquiry.

Finally, there is arguably the finest selection of short term leasing opportunities available in the market that we have ever witnessed. Should you be experiencing size constraints and be considering a short term leasing solution we welcome you to contact us so you can review the properties available.