The demand cycle in Brisbane has turned the corner and absorption over the last 12 months has been solid, at more than double the long-term average rate.
Face rents have remained stable over the year, however incentives have been under pressure, leading to significant declines in effective rents. While new supply has driven the vacancy rate up to record high levels, demand is gradually improving, supported by tenant relocations from fringe markets back into the CBD. A flight to quality has emerged with many tenants seeking to upgrade at an opportune time in the cycle.
88,463 SQMTotal Lettable area
5.1 YearsWeighted Average lease expiry
Vacancy rate to remain elevated as supply cycle nears completion, while rents and incentives remain relatively stable
Demand dynamics to continue improving in line with gradually improving economic conditions
Permanent asset withdrawals to mitigate much of the supply impact over the next few years