RESEARCH
THE flight to quality trend is going strong as 45% of CBD office tenants have traded up into a higher-grade space over the last 12 months...
According to Cushman & Wakefield’s Rethinking Australian Offices 2024, which looked at 250 leasing briefs in the Sydney and Melbourne CBDs in the past 12 months, uplift of...
As many occupiers gravitate to higher quality buildings as they adjust to flexible working, landlords tend to have one primary lever in response – upgrading their assets...
With tenants also seeking better access to amenity in prime locations, which has led to a recentralisation trend, as seen in the one-third of Sydney tenants relocating from...
While the impact was seen evenly in Sydney and Melbourne, we found that rents appear more sensitive to grades in Sydney and the same for amenity values in Melbourne...
The new modelling revealed increasing a building’s within-grade quality from standard to above average leads to a 5% decline in vacancy and a 7% increase in net effective rents...
The uplift in rent is a result of higher face rents and not tighter incentives, with landlords able to pass on some of the cost of building upgrades to tenants...
Investing in upgrades is not just a smart move but a necessary one for landlords who want to stay ahead as the ‘flight to quality’ trend continues to dominate Australia’s office market...
Whether it be through more efficient and flexible office layouts, energy efficiency, or events and pop-up installations that engage tenants, our analysis demonstrates that...
The office sector has seen premium-grade office space attract the lion’s share of tenants in recent years, with the market shifting to favour best-quality assets in the leasing market...
Japanese property developer Mitsubishi Estate Asia recently put its 30% share of Sydney’s tallest office building – the $2 billion Salesforce Tower – to the market, in a test of...