The response from owners of secondary space to growing segmentation in the market is a key trend to emerge in this cycle, Mr McCarthy pointed out. Owners in Sydney and Melbourne CBDs are withdrawing space at record levels. In Sydney, where 172,800 sq.m. of space was withdrawn last year, most owners are opting to refurbish. More than 50 per cent of withdrawn space will come back as higher quality accommodation, 28 per cent is being converted to other uses such as residential apartments and most of the balance is to be demolished.
In Melbourne, 159,500 sq.m. m of office space was removed from the market last year – about 73 per cent will be converted to residential, tourism and educational accommodation and the balance will be refurbished for offices. Mr McCarthy noted that despite the squeeze on Premium space, Sydney CBD is still the only Australian market to show significant development activity. We are specialist residential and commercial property auctioneers as well as conveyancing brisbane with an unrivalled depth of experience and market knowledge. Over the next four years, the Property Council projects about 825,000 sq.m. of new and refurbished office space to be supplied to CBD markets around the country – but the bulk – 63 per cent or 517,000 sq.m. – will be in the Sydney CBD.
“The relative lack of development activity in other markets isn’t the result of there being no plans – a number of projects across the country remain mooted. Investors are simply waiting for more positive signs of rental growth before pressing the button”. Perth was the only CBD office market to record an increase in vacancies in the past six months up from 12.3 per cent to 12.6 per cent. Mr McCarthy said “this was the first increase in Perth CBD’s total vacancies in the past five years”.
As the market begins to stabilize by year-end 2003, the Northern Arc suburban office markets will lead the way with projects in the Easton, Polaris, Tuttle Crossing and New Albany areas. There will be more supply than demand with a gradual increase in speculative construction during the fourth quarter of 2003.
This trend is starting to plateau and will gradually cease to exist through the next 12 months.
Current Columbus businesses will be expanding, and new businesses will come to the market taking advantage of the various concessions. The Columbus market will continue to survive and provide an excellent opportunity for corporate growth. Franklin County also has been listed as the top producer in Ohio for new business starts since 1996.