Perth office market tightest in the world

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Perth still holds the title of the tightest CBD office market in the world, according to new global office market research, which places Perth in the number one position for lowest vacancy rates and highest rents. 

However, Brisbane has slipped down the rankings from number 2 to number 6, according to Colliers International's biannual Global Office Real Estate Review Midyear 2008.

Colliers International commercial research director Felice Spark said that Perth had the lowest vacancy in the world - now at 0.3% - for the third time running in the biannual Colliers International report, which covers 172 office markets across the globe.

"While demand for office space was below the record pace witnessed for much of 2005-2007, the first half of 2008 was back to trend in many markets," she said.

Brisbane previously held the second lowest vacancy at 0.7% when the last Colliers International Global Office Real Estate Review was released in March, however the city now sits at number 6, with a vacancy of 1.2%.

Melbourne came in at number 18 with 3.1%, Adelaide at 24 with 3.9% and Sydney at 26 with 4.3%.

Simon Hunt, Colliers international managing director - office leasing, said the findings show the Australia is holding strong amidst volatile global conditions.

"The fundamentals are still very sound and, on the whole, I think we are seeing the Australian office market settle into a comfortable position on a global scale," Hunt said.

"We still have a reasonably strong economy. Unemployment rates are still very low, and we have only seen minimal retrenchment occur in the financial sector. This is playing out in an ongoing strong level of office leasing enquiry.  We haven't seen it drop off at all, particularly for good quality stock."

Perth's record vacancy was ahead of the CBD markets in Bucharest and Santiago, which both posted a 0.5% vacancy and Seoul at 0.7%.

Perth moved up the rankings for most expensive CBD office markets in the world, coming in at number 18 with an average A grade gross rent of $US80.34/sf (AUD $900.00 sqm). The most expensive average A-grade gross rent was recorded in Hong Kong at $213.68 USD/sf.

On the demand side, Spark said most economies across the Asia-Pacifric region are expected to continue posting very high growth rates, although not at levels witnessed for the past several years.

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