THE Docklands precinct is leading the way for Melbourne’s CBD return, as visitation picked up by more than 50% following the lift of work from home recommendations.
According to new data from Pathzz, a proprietary technology platform linked to CBRE, between August and September weekday visitation to the Docklands was up 49.9%.
“The Pathzz data is a positive sign for Melbourne, particularly given that Docklands accommodates the CBD’s largest office tenants. Over the close to three years since the start of the pandemic, large tenant demand has been subdued due to uncertainty around how workers would return to the office,” said Ashley Buller, head of office leasing at CBRE, Victoria.
“However, a shift is occurring, with this latest data showing that workers are returning to the office in greater numbers. This is flowing through to increased tenant demand, and we currently have four 10,000sqm+ tenants assessing the market, with indications that more large tenant briefs are in the wings.”
Melbourne’s Eastern Core precinct also saw a significant boost over the period, spiking by 39.1%, with the Western Core also up a strong 36.1%.
Diarmuid Killeen, head of CBRE’s Victorian office occupier business, also noted a sharp difference in the return to office between smaller and larger occupiers.
Smaller tenants have reportedly been far more active in the return, as reflection of the growing headcount of such occupiers over the last 18 months.
“While larger tenants have been slower to return, these larger organisations would like to see improved occupancy in their offices to drive collaboration, innovation and build culture, and many are now incentivising their staff to come back to the office more than 50% of the time,” added Killeen.
September data from Pathzz also found that over the month Melbourne’s main retail precinct, CVIC, saw a slighter uptick than the major office precincts.
Though Melbourne’s North Eastern core did have the greatest proportion of night time visitors, resulting from the larger offering of restaurants and theatres.
While over the weekends, the Eastern and Western cores had the lowest visitation rates, reflecting fewer permanent residents and retail offerings compared to other areas of the CBD.
Despite encouraging movement, Melbourne’s CBD still reported the lowest office occupancy rate, rising from 39% to 41% over September, but far behind Adelaide’s leading 78%.
