For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Office Market

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For many years, the Brisbane commercial market has largely gone under the radar in comparison to its southern counterparts…until now and according to the latest office report from property valuation firm HTW is now on the cusp of a major transformation.
The Herron Todd White report notes however, it will be a five-year project on the pathway to transformation into a world class city, with this fact being increasingly recognised in the commercial markets where there are increasing levels of interest in high quality commercial properties within Brisbane from Australian and international investors.
This has been evidenced by yield compression and strong capital growth over the past three years.
Yields which were solidly in the 6.75% to 7.25% range previously are now pressing downward into the 5.5% to 6.5% range, whilst capital growth of up to 30% has been recorded against some prime quality properties.
Against this backdrop however, the market is still plagued by persistently high vacancy rates, particularly in the B grade category and below.
This is holding back real rent growth and significant change in rents is not likely until Prime and A grade vacancies push lower into the single digits.
Recent leasing statistics released by Property Council of Australia have indicated that total vacancies in the CBD have contracted to a five year low of 13% as at January 2019.
The property valuers said, "Prime and A grade vacancies however are now at 10.4% and 9.9% respectively, and heading down."
"Gross face rents have stabilised with some assets seeing effective rents increase as incentives very slowly start to wind back, however vacancy rates remain high for secondary stock and face rents will continue to be flat as vendors compete to secure tenants."
"It is likely we will see a further widening in rentals between Prime or A grade and secondary accommodation," they added.
The fringe CBD leasing market is now largely dominated by the prime office precincts of Fortitude Valley (RNA, King Street precinct and Ann Street), Newstead (in and around Gas Works) and South Brisbane, according to the report.
Vacancy rates for fringe markets overall remain high at circa 14.8% but the better regarded precincts of South Brisbane and the Urban Renewal area are doing better at 10% and 14.2% respectively.
The report stated, "On the whole, fringe markets have been impacted by high vacancies in the CBD, but the Urban Renewal area is likely to continue to dominate the larger leasing and sale transactions."
"On the rental side, gross face rents appear to be increasing for premium buildings with some new leases reported at above $650 per square metre gross face. Incentives are also stabilising for prime assets."
"Conversely, secondary fringe CBD leasing markets are still oversupplied as tenants seek newer accommodation that is within close proximity of transportation and good retail amenities."
"Milton and Spring Hill commercial precincts continue to remain out of favour with tenants as vacancy rates continue to be the highest recorded for the fringe (21.5% and 17% respectively). These vacancies may present opportunities for re-purposing of some buildings in these areas," they noted.
There have been a significant number of quality commercial office listings in the first half of this year across the CBD, fringe CBD and inner-city areas.
Whilst many transactions are yet to transpire, there is reportedly strong interest being generated for well leased investment assets on both a local and interstate level.
"We believe some of these assets will likely achieve strong sale prices, as interstate investors priced out of Sydney and Melbourne see exceptional value in Brisbane (broadly speaking, there is a 150 to 250 basis point differential between Sydney or Melbourne versus Brisbane)," the valuers concluded.
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j.ballantyne1990-6AQqhLzZaK

Brisbane CBD on the cusp of office transformation: HTW Commercial

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The South Yarra office market is set to double in size in the next four years in the most significant expansion this increasingly sought after commercial precinct has seen in recent history. 
According to Colliers International research, there is 80,000 square metres of upcoming space in the South Yarra commercial market over three projects, with a pipeline until 2023. 
The largest injection of new office space will be an additional 50,000 square metres over four buildings at the new-look Jam Factory, being developed by Newmark Capital.
An estimated 4,000 square metres will be added at Chapel Plaza (402 Chapel Street) and another 25,000 square metres at Goldfields Group’s 627 Chapel Street which will comprise 25,000 square metres of office space.  
“No substantial office building over 4,000 square metres had been delivered in South Yarra in the last six years – all development in the last five years has been in the Forrest Hill precinct, so as new office space comes online, it joins a thriving, mostly residential, development market in this area,” Rob Joyes, Colliers International National Director of Office Leasing, said. 
“In recent years, large occupiers of 4,000 square metres-plus have had to focus on other city fringe areas such as Richmond and Cremorne due to a lack of options in South Yarra.  
“Led by the rejuvenation of the Jam Factory, these new projects will open the door for large occupiers to position themselves in this tightly held precinct.” 
According to Colliers International, South Yarra’s net lettable area was 97,000 square metres at March 2019. 
“An 80,000 square metres investment in new office space will result in the doubling of this boutique commercial precinct and turn it into one of the next city fringe office hot spots,” Colliers International Research Manager Sarah Walker said. 
“An analysis of historic office demand in the CBD shows that for every new head of population, 0.9 square metres of office space is demanded. Up until about 2015, office supply in the Melbourne CBD broadly kept pace with population growth.
“Since that time, however, the increase in population has outpaced CBD supply growth. This has contributed to the exceptionally low vacancy we are recording in both the CBD and City Fringe markets. 
“Based on ABS forecasts, as well as Colliers’ own analysis of future office supply, this supply/demand imbalance is forecast to become even greater and the undersupply in the CBD will need to be met by alternative markets. 
“Tenant location preferences are continually moving towards greater emphasis on accessibility to public transport and amenity for staff. City fringe markets, particularly those serviced by a train station, are best positioned to capture this demand.  
“Vacancy in the city fringe is currently at just under 4.5%, and has been sub-4.5% for two years now. Coupled with the very low vacancy in the CBD, and a forecast for continued low vacancy, upcoming supply in the City Fringe is expected to be met favourably by Melbourne occupiers.” 
Joyes said office leasing teams were seeing a strong desire from businesses to cater to the lifestyle of their staff.
“People want to work, live and play in close proximity, and South Yarra offers not only easy access to the CBD for meetings but an abundance of after hours entertainment and amenity for employees to enjoy,” he said.
“The Jam Factory in particular is set to capture this demand and be snapped up by savvy businesses looking to attract and retain the best staff. This once in a generation development will truly unlock the full potential of this commanding 1.8 hectare site in one of Melbourne’s fastest growing and most affluent suburbs.  
“Occupiers of the Jam Factory will also be able to take advantage of a new dedicated pedestrian connection linking the development to South Yarra railway station, one of the busiest train stations outside the Melbourne CBD.” 
Jonathan Bradhurst , Newmark Capital Project Director, said The Jam Factory was at the focal point of South Yarra’s vibrant lifestyle precinct fueled by innovation, creative industry and its young and affluent demographic.  
“South Yarra continues to evolve, on trend, with an exciting lineup of new apartments, food halls, restaurants and gyms in the pipeline,” Bradhurst said.
“Businesses across the spectrum of culinary, physical fitness and wellness and entertainment see the value of bringing their services to South Yarra to reach the millennial, educated demographic that makes up nearly 50% of the neighbourhood’s residents.
Jonathan Isaacs, of the Clemenger Group, said South Yarra was an ideal fit for businesses looking to provide work-life balance in close proximity to the CBD and an abundance of amenity. 
“We’re proud to base some of the Clemenger Group’s businesses in South Yarra because our employees love to work here,” he said.
“Our agencies get to form a part of the creative precinct along Chapel Street, and the competitive overheads mean we can invest in contemporary, exciting office fit-outs that reflect the businesses they house.”
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South Yarra office market set to double with record injection of capital

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South East Queensland’s commercial market has experienced a strong start to 2019, with the first quarter marked by plenty of activity and confidence, according to Knight Frank.
Knight Frank Partner and Head of Queensland Ben McGrath said the market was a beacon of light in the property industry, faring better than most other markets around Australia, largely due to a strengthening economy.
“Both the residential and commercial markets in South East Queensland are performing well, especially in comparison to other parts of the country,” he said.
“While Sydney and Melbourne’s commercial property markets have seen a correction in recent months after significant growth, Brisbane’s market continues to firm, with a lot of enquiry and transactional activity marking the start to this year.
The office and industrial sectors are the standouts in Brisbane’s commercial market at the moment, while retail has taken a backseat, said McGrath.
“The South East Queensland economy is now reaching a level of maturity that is attracting more interest from offshore buyers, and the assets being chased are those that present value-add opportunities or core assets with long, secure lease structures,” he said.
McGrath added that in addition to the office market, Brisbane’s industrial market continues to be very strong.
With the findings of the Banking Royal Commission only just recently released and the Federal Election looming, Jennelle Wilson, Knight Frank Partner, Research and Consulting, said there would be more activity in the second half of the year as confidence strengthened.
“There is no doubt investors are exhibiting confidence in our market in the short to medium term, but once there is more certainty about the future and confidence has re-established in the banking sector – which will take time - this will be strengthened,” Wilson said.
“South East Queensland will remain a strong proposition for investors due to all the fundamentals going in the region’s favour.”
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Australia’s commercial property investment hotspot is South East Queensland: Knight Frank

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SPONSORED POST
Australia’s CBD office markets have recorded a drop in vacancy rates throughout the second half of 2018, with Canberra leading the charge by falling 200 basis points, according to Savills Australia.
The findings come as a preview to the Property Council of Australia’s (PCA) release of its 2019 Office Market Report on Thursday, with all CBD markets recording falls in their vacancy rates throughout the six months to December 2018.
Savills Australia’s director for Research &amp; Consultancy, Shrabastee Mallik, said that the drivers for each CBD market were “vastly different”, though a normalisation in economic conditions across sectors and states, paired with strong office market fundamentals, were buoying CBD office markets across the country.
“We are at a point where we are seeing significant growth across a diverse range of industries, which is evident from gains in corporate profits in 2018,” she said.
“This has organically translated to growing requirements for workers in these industries. 
“In the September quarter, we saw the healthcare, mining, construction, and professional and technical services sectors driving total economic growth.”
NEW SOUTH WALES
In the Sydney CBD, the vacancy rate fell 50 basis points in the latter half of 2018 to 4.1 per cent, the lowest it has been since 2011, and one of the three lowest figures since the PCA started its Office Market Report series in 1990. There was a skew towards lessees from the property and business services, and finance and insurance industries seeking new office space.
NSW state director for Office Leasing, Tom Mott, said occupiers looking for office space greater than 3,000sqm with a start date in 2018 had been hard-pressed to find anything suitable.
“There was also merger and acquisition activity among law firms, and centralisation from the suburbs to the CBD, and the co-working trend continued,” he said.
“Apart from the co-working deals, staff attraction and retention were at the top of the agenda for why major office moves took place.” 
Mr Mott went on to say that despite the upcoming state and federal elections, which would typically suppress demand, building owners would continue to benefit from the lack of supply.
“As a result, we will continue to see net effective rental growth and ongoing competition for space,” he said.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/2/5/Savills-Office1.jpg" alt="">
“With the tight supply in 2019, many occupiers will look to refurbish their existing premises, which will see them upgrade their break-out areas and collaboration zones.
“We’re seeing an ongoing focus on mental health and overall wellness, which is an evolving trend to encourage staff to engage with each other on a more personal level, and in turn retain them.”
Mr Mott said building owners with vacant space would be well advised to “create a customer-focused, innovative and warm end-to-end experience in their buildings to capture the tenants looking to move”.
Key lease deals in 2018 included Allianz for 10,820sqm at 10 Carrington Street; WeWork for 3,800sqm at 64 York Street; Mills Oakley for 5,673sqm and Pfizer for 4,640sqm, both at 151 Clarence Street; and Norton Rose Fulbright for 9,527sqm at 60 Martin Place.
VICTORIA
In Melbourne, the CBD office vacancy rate fell 40 basis points to 3.2 per cent in the six-month period to December 2018, the lowest of all CBD markets nationally, which was largely in line with market expectations, given the limited amount of space available to lease. 
Savills research shows this phenomenon reflected in the leasing volumes, with just more than 250,000sqm (for space greater than 1,000sqm) leased in 2018, which was well below the numbers recorded in the past two years. 
“The simple fact is that office space in the Melbourne CBD is limited,” Ms Mallik said.
“The vacancy rate in June 2018 was already at a record low, so the scope for further downward movement is restricted.
“Tellingly, of the total leasing volume that was recorded last year, nearly half was for pre-commitments, further highlighting the lack of space currently available in the CBD.”
Melbourne’s CBD is experiencing a greater diversification in the tenant base, with government and education providers more prevalent than in Sydney, due to the lower rents.
Key lease deals in 2018 included NAB for 65,000sqm at 405 Bourke Street; Energy Australia for 22,000sqm at 697 Collins Street; Cbus Super for 9,600sqm at 130 Lonsdale Street; and the Australian Financial Complaints Authority for 7,600sqm, also at 130 Lonsdale Street.
VIC state director for Office Leasing, Mark Rasmussen, said Melbourne’s office market and economy had been “the powerhouse of the nation” in 2018, recently outpacing the rest of the eastern seaboard. 
“The dramatic falls in office vacancy rates throughout the past two years are becoming more gradual, as Melbourne moves towards a vacancy trough at the end of 2019,” he said. 
“We simply do not have the space to lease.”
Mr Rasmussen went on to say that the current vacancy rate was at an all-time low of circa 3.0 per cent, with the early 2020s trough expected to sink to mid-2.0 per cent, and A-grade office vacancy significantly lower again.
“At the coalface of the leasing market, we feel the frenetic pace of the Melbourne economy will slow with the looming federal election, the expected change of government, the reduced availability of credit, and the geo-political challenges across the globe,” he said.
“Despite these challenges, tenants with leases expiring in 2019 are faced with a lack of options and continued high rental growth, which has been close to 10 per cent per annum these past two years.
“Tenants with 2019 lease expiry dates and their landlords should ensure they seek advice to understand and keep up with this dynamic marketplace.”
Mr Rasmussen predicted that despite the recent sharp increases to rental rates, the higher base would become the new normal, “as Melbourne finally starts to catch up with other Australian capital city rents”.
QUEENSLAND
PCA data showed the Brisbane CBD’s office vacancy rate lead the national drop in office vacancy, falling 170 basis points in the latter half of 2018, to 13.0 per cent, which exceeded market expectations.
Recent leasing activity suggests there will be greater movement in the vacancy rate in the first half of 2019, with several large leasing deals currently underway. 
“Leasing activity in the CBD is often restricted by the proximity of the city’s fringe office market, allowing occupiers to move easily between the two precincts, though similar rents and incentives are providing the impetus for occupiers to look for space in the more viable CBD,” Ms Mallik said. 
“Complementary development activity in the form of Queens Wharf, has really brought the CBD to life, and the wellness movement that has taken off recently is also aiding occupier moves into the city.”
Savills Office Leasing manager, Daniel Boyes, confirmed that Brisbane’s leasing enquiry had continued to strengthen on the back of the downward trend in vacancy.
“The CBD has seen several new additions with WeWork, Hub and various other groups absorbing large portions of space,” he said.
“Demand for smaller fitted suites has also seen consistent growth despite a significant increase in supply.” 
Mr Boyes went on to say that the Brisbane CBD hosted “a healthy mix” of tenants and was not as skewed towards the mining industry as the media was suggesting.
“Throughout the past 12 months, we have actually seen several lessees from the finance and insurance industries capitalise on low rents and relatively high incentives to recentralise into the CBD,” he said.
“That said, we will see continued growth and demand from coal miners, along with the state government, two sectors we have identified as major growth occupiers in 2019.” 
Key lease deals in 2018 included Suncorp for 39,600sqm at 80 Ann Street; Deloitte for 8,000sqm at 123 Eagle Street; the state government for 5,319sqm Capital Hill; and Sonic Healthcare for 2,138sqm at 545 Queen Street.
WESTERN AUSTRALIA
In Perth, PCA data showed the CBD office vacancy rate falling 90 basis points to 18.5 per cent in the six-month period to December 2018, with leasing activity showing an uplift, and recentralisation a recurring theme among occupiers. 
“In 2018, we saw just under 70,000sqm (for space greater than 1,000sqm) of leasing volume recorded, which was up from the year prior,” Ms Mallik said.
“We are likely to see leasing volumes continue to be supported by the recentralisation trend, as lessees look to capitalise on record low rents and relatively high incentives. 
“Perth is similar to Brisbane, in that we are seeing the city come alive with complementary development activity, most notably in the form of Elizabeth Quay. 
“Infrastructure activity is also pushing this story, with Perth City Link aiding connectivity to the CBD.”
Savills national head of Office Leasing, Graham Postma, said the significant decline in vacancy was “a direct result of the key trends of 2018 – recentralisation to the CBD and the flight to quality”.  
“This is clearly evidenced by the divergence in direction of the premium and A-grade vacancy, both of which are declining, compared to Sydney levels in the case of premium stock, while lower-grade stock continues to increase,” he said.
Perth has long been known as the mining capital of Australia, with Ms Mallik saying the mining resurgence was underpinning the CBD leasing market.
“In 2018, almost half of the total leasing volume was to tenants from the mining and utilities industry,” she said.
Key lease deals included Wood Group for 9,198sqm at 240 St Georges Terrace; the Department of Human Services for a combined 13,037sqm across two deals at 556 Wellington Street and 226 Adelaide Terrace; Minter Ellison for 3,440sqm at 77 St Georges Terrace; and Macquarie Bank for 3,311sqm at 240 St Georges Terrace.
SOUTH AUSTRALIA
Adelaide’s CBD office market experienced a vacancy rate fall of 50 basis points to 14.2 per cent in the latter half of 2018, with leasing volumes recording a significant increase on 2017, and more than 30,000sqm (for space greater than 1,000sqm) of leasing transactions recorded in Savills research.
The city is at a turning point, with prospects for growth notably greater this year, according to SA director for Office Leasing, Adam Hartley.
“This contraction is likely to continue in response to office relocations in the first quarter of 2019,” he said.
“Interestingly, the vacancy rate for prime-grade office space will contract the most, with the majority of office vacancy available in secondary-grade accommodation.
“The contraction will swing the balance towards a lessor market, which in turn will reduce incentive rates in high B-grade and A-grade office buildings.”
Mr Hartley said recent record-breaking transactions showcased the desire of several major international companies to establish a footprint in Adelaide. 
“Suncorp taking up 4,660sqm of space and building signage rights at 1 King William Street represented Adelaide’s largest net-lettable-area deal to date,” he said.
Mr Hartley went on to say that the entrance of global post-production effects company, Technicolor, into Adelaide at 178 North Terrace was another internationally successful outcome that reinforced South Australia’s position on the world map.   
“The Technicolor win for South Australia was the largest office accommodation tenant attracted to Adelaide, which will in turn employ up to 400 new staff,” he said.
AUSTRALIAN CAPITAL TERRITORY
Canberra had the second-largest drop in its vacancy rate in 2018, falling 140 basis points to 11.0 per cent between June and December, which was largely driven by a withdrawal of stock. 
That said, prime-grade vacancy in city-fringe precincts like Barton were already at record low levels, with limited options for tenants to move around, according to ACT director for Office Leasing, Pip Doogan
 “We have seen demand shift from larger office spaces to smaller occupiers in the 250sqm to 500sqm market, making up the majority of the lease transactions across Canberra throughout the past six months,” she said.
“Spec fit-outs are proving to be the favorable option for tenants who are considering a move.”   
Ms Doogan said that Canberra “hasn’t really moved throughout the past 12 months” in regards to rents or incentives across all markets.
“Looking forward, we cannot see that it will shift in the next six months, especially with an election this year and the likelihood of a change in government,” she said.
“Private sectors are still floating around but the majority of the deals are being done in the sub-1,000sqm market.”
Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. For further information, please feel free to reach out to any of our <a href="http://www.savills.com.au/services-and-sectors/leasing/office-leasing.aspx" target="_blank">Office Leasing</a> agents or Savills Director of Research &amp; Consultancy Shrabastee Mallik. To learn more about Savills, visit <a href="http://www.savills.com.au/" target="_blank">savills.com.au</a>.
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jrobinson-rf4aSBido9

Strong economic conditions and office leasing fundamentals buoy CBD markets across Australia: Savills

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George Place, a new $75 million precinct in the heart of the Sydney CBD, has just been unveiled.
The precinct, owned by superannuation fund-backed manager ISPT, has linked three Fender Katsalidis-designed buildings to create a new premium office location bounded by George, King, York and Barrack Streets.
Spanning around 54,000 sqm of commercial space, Current tenants include tech giant Atlassian, TAL and EML, who comprise around 3,000 workers.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/28/George2.jpg" alt="">
The lobby of George Place, beneath a ceiling structure integrated with a bespoke, programmable lighting concept, features ethically sourced indigenous art from the Northern Territory.
It offers a choice of meeting spaces, quiet zones, social hubs and food and bar options.
George Place is made up of buildings at 345 and 363 George Street, as well as the heritage-listed 24 York Street.
In 2006 ISPT acquired the three adjacent A Grade commercial office towers.
 
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ISPT unveil $75 million George Place precinct in Sydney

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Dramatically changing property markets have seen a new breed of commercial building chameleons across Melbourne, with plans to turn offices into apartments being abandoned in favor of returning to office space.
According to CBRE national director of investments Mark Wizel, while the long term prospects for large scale residential projects remain positive, Melbourne’s booming office market has made office development the compelling shorter term alternative.
"Residential is in a cyclic downturn but make no mistake it will recover as Melbourne’s population continues to outpace the rest of Australia’s capitals, however currently the case for office development is extremely good with solid rental growth, reducing incentives, and vacancy, at 3.6 per cent, at its lowest point in a decade," Wizel said.
"We are also talking about delivering new office stock into not only Australia’s fastest growing city but also the best performing economy nationally.
"That augurs well for continued growth in the market as the economy drives jobs growth and increasing demand for office space,’’ Wizel said.
According to the latest ABS data, Victoria’s annual growth in trend employment stood at 2.6 per cent with 30.5 per cent of the 20,300 average monthly increase in employed full-time persons nationally over the past 25 months. At September the unemployment rate stood at 4.5 per cent, the lowest rate in seven years. 
Wizel said Melbourne’s cheaper office rents, more affordable housing and generally lower cost of living, was also attracting office tenants away from the Sydney market. 
"The attraction to set up in Melbourne has always been there but there is no doubt that Sydney’s eye-watering cost of housing, in particular, is arguably having a greater impact than has hitherto been the case.   
"As a consequence of a number factors the demand for office development sites in the last couple of months has been off the charts and, with the current shortage of available sites, land values are really under pressure especially for well-located sites where a reasonable size floor plate can be achieved,’’ Wizel added.
He said he expected the office development site market to continue to tighten into the new year as work began and continued on some of the biggest infrastructure projects in Victoria’s history including the $16 billion North East Link and the $11 billion Metro Tunnel projects.
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Offices to apartments back to offices: The changing property landscape in Melbourne

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The office market across New South Wales, including Sydney, is performing strongly, according to valuation firm Herron Todd White (HTW).
HTW have all eight New South Wales areas that they value at either approaching the top of the market or at the market peak.
Coffs Harbour, Dubbo, Lismore, Tamworth and South East NSW are all at the peak of the market, along with Melbourne who has been at its peak for the last 12 months.
Click <a href="https://www.propertyobserver.com.au/images/2018/11/19/HTW-Clock.jpg" target="_blank">here</a> to enlarge.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/19/HTW-Clock.jpg" alt="">
The last time HTW analysed the national office markets in August, Sydney's office market was rising.
Gold Coast had previously been at the peak of market, however their office market is now starting to decline having spent the last 12 months at the peak.
There is little change from October last year at the bottom of the market.
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Office market across NSW performing strongly while Melbourne remains at peak: HTW

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Quarterly net absorption across CBD office markets has hit the highest level since Q4 2007, according to recent findings from JLL Research.
JLL Research's Q3 2018 statistics on national office markets showed positive net absorption of 151,200 square metre over the quarter and 258,600 square metres over the 12 months to September 2018.
The national CBD office market vacancy rate compressed 9.1% in Q3 2018 a reduction of 1.8 percentage points over the year to September 2018.
“Labour force surveys show that corporate Australia is increasing headcount which has translated into positive leasing enquiry and activity,” stated JLL Head of Research, Australia, Andrew Ballantyne. 
"While Melbourne continues to be the standout performer, the leasing market upturn is more diverse with above trend net absorption in Canberra, Adelaide, Brisbane and Perth.”
<img src="https://www.urban.com.au/images/2018/10/11/JLL%20Graph%201.JPG" alt="">
The Melbourne CBD recorded 79,900 square metres of net absorption in Q3 2018 and 187,800 square metres over the 12 months to September 2018.
The Melbourne CBD vacancy rate tightened from 4.6% in Q2 2018 to 4.0% in Q3 2018 – the lowest level since Q2 2008.
Melbourne CBD prime gross effective rents increased by 1.1% over Q3 2018 and by 8.7% over the 12 months to September 2018.
“The Melbourne CBD office leasing market juggernaut continues to roll on. Melbourne is one of the world’s strongest performing cities and we continue to see a diverse range of industry sectors expanding their occupational footprint in the Melbourne CBD," JLL Head of Office Leasing, Australia, Tim O’Connor said.
“The Melbourne result was even more impressive as it included the relocation of the Victorian WorkCover Authority to a new premise in Geelong.
“The Melbourne CBD development pipeline will deliver new product over the next two years with 2020 expected to be the largest year for completions since 1991. However, the strength of the demand-side of the equation has led to a downward revision in the vacancy rate. We project 2020 vacancy will be in the 6% territory – well below equilibrium of 7% to 9% for the Melbourne CBD."
<img src="https://www.urban.com.au/images/2018/10/11/JLL%20Graph%202.JPG" alt="">
JLL Research found that the Sydney CBD recorded 8,800 square metres of net absorption over the 12 months to September 2018 and vacancy was 4.7%. Low vacancy continues to exert upward pressure on Sydney CBD rents. Prime gross effective rents increased by 0.8% over the quarter and by 10.1% over the 12 months to September 2018.
“Co-working operators are really ramping up their presence in the Sydney CBD. Two more WeWork facilities opened in Q3 and we are speaking with a number ofpotential new co-working operators. One of the challenges for new entrants is the lack of contiguous space in the Sydney CBD,” O’Connor said. 
The Brisbane CBD recorded 15,400 square metres of net absorption in Q3 2018 and vacancy tightened to 13.9%. Over the past 12 months, net absorption in the Brisbane CBD has totaled 39,600 square metres – 29% above the 40-year average of 30,600 square metres.
“The Brisbane CBD leasing market recovery is starting to gather momentum with prime grade vacancy (8.2%) tightening to the lowest level since Q412. The next phase of the Brisbane recovery will see a reduction in leasing incentives and an improvement in prime effective rents,” Ballantyne said.
The Perth CBD recorded net absorption of 17,600 square metres in Q3 2018 and 34,000 square metres over the 12 months to September 2018. Vacancy remains elevated (22.0%), but the spread between prime (18.0%) and secondary (28.1%) grade vacancy remains wide.
The Adelaide CBD recorded positive net absorption of 14,700 square metres in Q3 2018 and 23,200 square metres over the 12 months to September 2018. The quarterly net absorption in Adelaide was the strongest since Q408. Vacancy tightened to 13.7% with prime grade vacancy moving back into single digit territory (8.3%) in Q3 2018.
Ballantyne said defence, resources and professional services are growth sectors of the Adelaide CBD office market. The expansion of the defence sector and competition for skilled labour has led to organisations shifting operations into the CBD. BAE Systems moved into the CBD from Edinburgh Parks in Q3.
Canberra recorded net absorption of 35,700 square metres in Q3 and vacancy tightened to 11.6%. Low vacancy in the prime grade sector (6.2%) has resulted in rental growth with prime gross effective rents increasing by 3.7% over the 12 months to September 2018.
Ballantyne concluded by noting Brisbane, Perth and Adelaide will be the office markets to watch closely in 2019. Leasing enquiry and activity is positive, prime grade vacancy has tightened in Brisbane and Adelaide and we expect owners will start winding back incentives to a level more associated with current vacancy rates.
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Net absorption across CBD office markets reach their highest levels since 2007: JLL

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SPONSORED POST
Savills Australia and Investa bring the new Barrack Place, 151 Clarence Street to near-capacity
Forming part of the traditionally historic York and Clarence Street precinct, Barrack Place by Investa is set to transform Sydney’s CBD when it reaches completion in Q4 2018.
Investa Office Fund (IOF) is the force driving the redevelopment at Barrack Place, 151 Clarence Street, a next-generation A Grade office tower designed in line with the historic warehouse precinct in the heart of Sydney CBD.
Barrack Place was previously three B Grade buildings interlinked by a substantial core and 24 columns, which Architectus has designed into a boutique 18-storey office tower, with a side core and two internal columns within the glazed high-rise that emerges from the heritage brick façade of the podium levels.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/21/BARRACK-ATRIUM.jpg" alt="">
It incorporates large open floorplates, a highly efficient structure and a northern void that runs the full height of the building to allow extra light penetration. With a five-star NABERS Energy rating target and a six-star Green Star rating, the development was awarded Australia’s first ever WELL Core and Shell Precertification at the Gold level by the International WELL Building Institute™ (IWBI™).
From a corporate perspective, Barrack Place by Investa is perfectly positioned, with the Barrack Arcade link providing access from the Martin Place business spine to Darling Harbour and Barangaroo.
As Barrack Place nears its completion date, Savills Australia is working closely with Investa to bring the building to capacity and fill the two remaining office floors.
Pfizer Australia, Arup and Mills Oakley are among the pre-committed tenants, accounting for 84 percent of the lettable space available.
“The building is now 84 percent pre-leased and, not unsurprisingly, we are receiving good interest in the remaining two floors,” Savills Australia’s NSW State Director for Office Leasing, Rob Dickins, said.
Mr Dickins said Barrack Place continued to receive strong interest from national and international companies looking to either reposition their business or expand/consolidate operations into the new-age development.
“This is Sydney’s only new office building to be completed this year,” he said.
“There is limited supply of quality, new-generation A Grade office space within the market at present, with vacancy in the western corridor sitting at 1.35 percent.”
Barrack Place has been designed to provide the ultimate flexibility for occupiers, with options for large, contiguous floor space or smaller, subdivided space.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/21/barrack-office.jpg" alt="">
Mr Dickins said that aside from the flexible side-core floorplates and versatile work areas, the health and wellbeing features of the building had been a key drawcard for prospective tenants. The latest end-of-trip facilities, smart sensor lighting, filtrated on-floor air-conditioning, and integrated digital twin technologies are among some of the notable key features.
“When Barrack Place comes to completion in October, it will be one of the most advanced buildings in its class in Sydney and embedded with the latest technology,” he said.
Three levels of retail space accessible via Clarence and Kent streets have been billed as Sydney’s most vibrant and contemporary laneway retail precinct, and will include hip eateries, cafes and a restaurant/wine bar.
Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. Rob Dickins is Savills NSW State Director for <a href="http://www.savills.com.au/services-and-sectors/leasing/office-leasing.aspx" target="_blank">Office Leasing</a>. To learn more about Savills, visit <a href="http://www.savills.com.au" target="_blank">savills.com.au</a>.
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Barrack Place development to transform Sydney CBD: Savills

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The Cairns office market is relatively shallow and experiences limited sales activity and has had limited new development, according to the latest Herron Todd White (HTW) commercial report. 
The last large office building constructed in Cairns was the State Government office tower completed in 2010. There are no known new developments in the pipeline.
Commercial property sales in Cairns, inclusive of retail and commercial office premises, remain well below the peak levels achieved in the 2005 to 2007 period.
Prices paid for secondary strata titled premises have been relatively stable since 2010 at around $2,500 to $3,000 per square metre of floor area.
Most new office space leasing demand is for smaller areas and for modern, good quality green star rated premises, however there is only a handful of such buildings in Cairns.
These buildings achieve high levels of occupancy and are experiencing stable rent levels typically of $350 to $400 per square metre per annum.
Demand for lesser quality space remains limited and there is a large oversupply of good quality non-inner CBD and well exposed secondary space in the $200 to $275 per square metre per annum rental range. These conditions have placed downward pressure on secondary rents and seen the emergence of incentives.
Overall the Cairns office market has experienced little change thus far during 2018 and is expected to see little change for the remainder of the year.
A current listing is a Cairns City commercial office priced at $150,000 (pictured below).
It has been listed by Chris Gay Real Estate. 
<a href="https://www.realcommercial.com.au/property-offices-qld-cairns+city-502846810" target="_blank">Located at 23/25-31 Grafton Street</a>, the 50 square metre office is currrently tenanted with a return of $12,785 per annum.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/8/cairns%20city.jpg" alt="">
Another offers around $900,000 is Cairns City building with long term tenants in place (pictured below).
<a href="https://www.realcommercial.com.au/property-offices-qld-cairns+city-502783394" target="_blank">Situated at 22 Minnie Street</a>, it is two blocks from the Cairns Central Shopping Centre.
It features 410 square metre land area, 359 square metre floor area and four off-street parking spaces. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/8/cairns%20city%202.jpg" alt="">
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