Leading indicators point to improving take-up in Sydney
The Dexus Office Demand Barometer for the March 2017 quarter registered +2.0%, up from last quarter’s reading of +1.7%.
This moves the barometer reading well into ‘good’ territory.
Demand for office space in the Sydney CBD, Australia’s largest office market, is expected to strengthen further over the next few months.
Factors pushing the Barometer higher were an improvement in the US economy, a solid uplift in ANZ job advertisements and a rise in business travel departures.
All of these indicators are signs of rising business activity which is evidenced by an increase in leasing enquiries across our portfolio from the finance & insurance, business & property services and IT sectors.
Demand was strongest from small companies requiring less than 500qm of space, which indicates the strength of demand among small to medium enterprises.”
Withdrawals of older stock have led to tenants moving to higher quality buildings, with Prime take up more than 23,000sqm for the quarter.
Net absorption in the Sydney CBD rebounded to be positive in the March 2017 quarter (+2,200sqm) and the Barometer implies another improvement next quarter.”
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