Australia's office vacancy rates crept higher in the first half to levels not seen since the 1990s, according to new research on Thursday which underscores the challenges facing landlords struggling to fill buildings emptied during COVID amid a slowing economy. Vacancies in downtown Sydney, Melbourne and Perth, where most large companies are headquartered, were already above 10% and rose between 0.2% and 0.9% in the first half of the year, with those in the Melbourne central business district (CBD) rising the most, according to biannual data published by the Property Council of Australia. The national CBD vacancy rate rose to 12.8% from 12.6, the data showed.
Australia s office vacancy
rates crept higher in the first half to levels not seen since
the 1990s, according to new research on Thursday which
underscores the challenges facing landlords struggling.
Turmoil across the tech sector last year has reverberated into 2023, forcing company founders to make tough calls about cutting costs and raising capital.
Demand for office space in Sydney and Melbourne has not fully recovered as tech-sector redundancies and staff preferring to work at home weighs on the commercial property sector.
While rising vacancy rates will challenge rental income, there are also signs of hope for landlords, demand ticking up and while sub-lease space falling.