1 . West Perth
The largest suburban office precinct in Western Australia , this market has had a hard few years given the high vacancy rates of Perth CBD . Competition from the CBD in terms of quality and price driven by high incentives has seen West Perth vacancies at a prolonged high . However , we ’ ve seen vacancies fall now over the last three years as the attractiveness of this market grows , given its parking and affordability compared to the improving Perth CBD market . This market has recorded 21,738sqm of take up over the last year which is the third highest in the country behind Brisbane CBD and Brisbane Fringe . This is an outstanding result given its market size of approximately 411,000sqm .
2 . Brisbane Fringe
The high population growth in Queensland has had a positive impact on the office market across the state . Brisbane Fringe recorded the second highest net absorption of all Australian office markets of 63,625sqm , however , this is the largest non-CBD office market in the country with over 1.3 million sqm of stock . Improvements in this location are indicative of a changing appetite for locations which can offer parking and affordable , quality accommodation options .
3 . Brisbane CBD
Brisbane is the fourth largest CBD in the country and has attracted the greatest level of take up over the last 12 months . Vacancies currently sit at 12.9 per cent in a market that ’ s averaged 14.3 per cent over the last 10 years . Improvements in employment demand in the city , borne out of a growing population , has resulted in the need for new and expanding businesses to absorb existing stock .
4 . Darwin CBD
Darwin CBD is the smallest CBD market in Australia . With only 226,514sqm of stock , this market is subject to many fluctuations in results . Vacancies sat at 19.7 per cent two years ago , while current results of 14.3 per cent highlights an improvement in local demand .
5 . Sunshine Coast
The coastal Queensland markets have been high performers over the last couple of years , benefitting from population growth and increased new business starts . The office market is still emerging with a number of newer , quality offerings , which are eagerly sought after , resulting in strong levels of take up . Vacancy for the Sunshine Coast sits at just four per cent , the lowest rate recorded since the start of data collection in 2008 .
6 . Gold Coast
The Gold Coast is another strong performer capitalising on population and new business growth . This market is approximately 454,000sqm in size and has achieved nearly 12,500sqm of take up over the last year . Demand continues to increase , particularly for A-grade assets , however , there has been little new stock added over the last few years resulting in vacancies falling to a 16 year low of six per cent .
7 . Parramatta
As Sydney ’ s largest non-CBD market , this precinct continues to grow . High quality , A-grade assets continue to be added to the market , as total stock approaches one million sqm . The geographic advantage of being in the centre of Sydney , and access to transport coupled with modern accommodation options has made this an attractive option for many larger tenants ; notably business , finance , and insurance occupiers . While this market has been hampered by COVID-19 , with tenants reducing their footprint amidst a strong supply pipeline , this market remains the most active in Sydney , recording more than 20,000sqm of absorption .
8 . Newcastle
Newcastle is another coastal location showing quality results . Population movements out of Sydney to regional areas have benefited this location . Affordability and new business starts are aiding the improvement of this small office market .
9 . Perth CBD
The second most active CBD in Australia , Perth has benefitted from limited lockdowns and is not facing the same work from home mentality of the eastern states . This has kept the CBD vibrant and office markets growing in occupancy . Mining , engineering and construction continue to grow their footprint , however , professional services ( such as finance ) have increased their holdings , capitalising on the incentives on offer after a period of prolonged high vacancies .
10 . Wollongong
Population movements continue to benefit this location , which is the smallest of the New South Wales office markets . With new supply added over the last year , Wollongong has done well to keep absorption positive in the face of high vacancy . This market has historically had difficulty in attracting larger , national businesses . Local demand is the major space user , which may see current stock levels slow to be absorbed .
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