Strong absorption of city office space is being seen as evidence of a solid economy and labour market.
JLL Research figures shows positive net absorption of 26,700m2 in the December Quarter across CBD office markets and 296,900m2 over the past 12 months. The net absorption result for 2015 was approximately 100,000m2higher than the 20-year average for CBD office markets (197,000m2).
JLL’s Head of Strategic Research, Australia, Andrew Ballantyne said: “Activity in the office sector is intrinsically linked to the health of the labour market. While the rate of hiring varied by state and industry sector, overall headcount growth was firm in 2015.
“Employment growth was strongest in NSW and VIC and this was reflected in above trend net absorption results for the Sydney and Melbourne CBDs in 2015. However, the Brisbane CBD surprised on the upside with a sharp reduction in sub-lease availability over 2015.”.
JLL’s Head of Office Leasing, Australia, Tim O’Connor said: “The recovery in the Sydney CBD office market continues to be led by the technology sector. Expedia and Dropbox committed to new space and expanded their occupational footprint in the Sydney CBD in Q4.”