Office market showing early signs of rebound as capital returns

RESIDENTIAL PROPERTY

COMMERCIAL real estate owner, manager and developer Investa is optimistic about Australia’s major CBD office markets in 2025, expecting both leasing and capital markets...

The outlook comes at the end of a year that has seen the hefty downs revaluations of office buildings in response to shifts to hybrid works and a high cash rate materialise in...

Australia’s major CBD office markets are showing signs of early cycle recovery, with both leasing and capital markets expected to improve through 2025...

Headwinds from the post-COVID work transition appear to be easing, as hybrid work patterns settle. Lower inflation and anticipated interest rate cuts will ease pressure on...

The Sydney CBD is “leading the pack” in terms of positive leasing demand and capital market activity. It has recorded the strongest 12-month period of transactions since 2021, with

However, with core inflation holding high, labour markets holding tight, and rising geopolitical risk, hopes for a rate cut early in the new year have been pushed back to...

Cannington said that as the cyclical capital transactions market recovery experiences variable timing and strength across Australia’s office markets and asset types...

Sydney CBD prime office capital returns are forecast to outperform throughout the cyclical recovery. Melbourne CBD prime market cap rates, meanwhile...

As inflation eases further, interest rate cuts are likely to support improved business conditions and tenant business expansion plans in 2025. New Australian CBD office supply will...

Lower interest rates and improved business conditions are expected to support office-based employment, with specialist business services and finance likely to lead the...

With a number of Australian businesses, including significant employers across both of these sectors and others announcing expectations for office attendance through 2024 we expect...

Investa’s office occupancy stabilised at 70% to 75% of pre-COVID levels through 2024, including peak day occupancy rates of 85% to 90% – up from 60% to 70% through 2023...

Higher office occupancy in 2024 has reflected both a strong desire for office workers to work collaboratively in a physical office workspace and an increase in tenant businesses...

More stable expectations of office attendance and reported occupancy rates have coincided with positive leasing demand (i.e. net absorption) and...

Related stories

Related stories

______________________________

Connect with us: