Strong demand and an easing of the supply pipeline have allowed the vacancy rate to decrease in Melbourne.
Demand has been supported by a high volume of smaller tenant moves (<1,000sqm) and a wave of tenants relocating from fringe markets into the CBD. Domestic lead indicators, such as job advertisements and business conditions remain robust, supporting a solid demand outlook. Although Melbourne is lagging behind the rental dynamics of Sydney, rental returns are expected to continue to improve.
172,998 SQMTotal Lettable area
7.4 YearsWeighted Average lease expiry
An easing supply pipeline and solid demand fundamentals will underpin a tightening in vacancy and growth in effective rents
Larger finance and business services tenants to expand as demand cycle evolves
Yields are likely to remain under downward pressure as vacancy tightens and rental growth escalates
|1 567 Collins Street||$ 303.7m||8%|
242 Exhibition Street
Royal Mint Centre
383 La Trobe Street
|4 800 Toorak Road||$ 127.1m||4%|