Vacancy: one in eight offices empty
Monday, 22 July 2013
Author: Kevin Naughton, Indaily
Office vacancy rates in Adelaide's CBD have topped 12 per cent, forcing landlords to offer longer rent-free periods or refurbishments to attract tenants.
Adelaide's 12.7 per cent vacancy level is well above the national rate, which itself is rising to new highs, latest statistics released by Jones Lang LaSalle Research show.
Five of the nation's six capital city CBD office markets recorded double-digit vacancy rates, the figures show.
Adelaide and Canberra (11.6 per cent) recorded higher vacancies over the quarter, while Sydney (10.2 per cent) and Melbourne (10.0 per cent) moved above 10 per cent for the first time in the current cycle. Perth (7.9 per cent) is the only CBD office market now recording vacancy below 10 per cent, while Brisbane continues to suffer from some building issues to be at 14.3 per cent.
"There's no denying it's a challenging market for landlords in particular," Adelaide's Jones Lang LaSalle spokesman Tom Budarick told InDaily.
"There's not so much a downward pressure on rents; landlords are having to provide incentives such as a rent-free period or a co-contribution towards fit-out costs.
"The good news is that the vacancy rate is not so much a case of a fall in demand, rather it's largely driven by new supply coming onto the market.
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