RECENT MEDIA SUMMARY OFFICE REVAMPS SET TO HIT A RECORD HIGH IN SYDNEY •
Major employers in finance and IT still request for space in the CBD despite decentralisation efforts by the government
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The economies of scale delivered in the Sydney CBD is leading to the conversion of old stock into prime office space.
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The average annual growth in the number of completed developments and refurbishments has been 22.9percent in the last 30 years
Image and article source: The Urban Developer
CHARTER HALL DOMINATES IN WESTPAC BUILDING TUSSLE •
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Charter Hall is understood to have achieved ‘preferred’ buyer status for Blackstone's half-stake at Westpac Place Bidding among the principal contenders has pushed the price to more than $850 million. The principal contenders are Charter Hall, GPT and Deutsche
Image source: Andrew Quilty Article source: Australian Financial Review
DEXUS RIDES WAVE OF HIGH OFFICE DEMAND • • •
BIS forecasts commercial property to fall in the next 5 years as interest rates rise Across 73 transactions, Dexus leased 92,822 square metres of office space and 14,832 square metres of office development space Low vacancy rates coupled with high demand for space is proving advantageous to Dexus, like most office landlords at present.
Image source and article source: The Urban Developer
SYDNEY OFFICE VACANCY RATE TO HIT 3 PER CENT BY END OF 2019: BIS OXFORD ECONOMIC • • •
The office vacancy rate in the Sydney CBD will hit 3 per cent by the end of 2019 due to an inadequate supply of new office space The CBD vacancy rate is placed at 4.6 per cent in December and would continue to decline over the next two years As “low net additions are outpaced by moderate demand.”
Article source: Australian Financial Review
RECENT MEDIA SUMMARY THE NUMBERS BEHIND WEWORK'S GROWING EMPIRE •
The co-working company has amassed a global portfolio of more than 1.3 million square metres and is looking for $500 million to finance even more growth.
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The documents show that the company has committed to pay at least $18 billion in rent for that space in total. • The company has expanded its membership with 220,000 members as of March in 234 locations in almost two dozen countries. Image and article source: Bloomberg
FOREIGN BUYERS ABSORB HALF THE OFFICE DEALS IN 2017 •
Offshore investors have taken over $8.3 billion of office property transactions in 2017, accounting for over half of the deals which hit $16.2 billion
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The most active foreign investors were buyers from Singapore, who constitute 18.2 per cent of deals, followed by Hong Kong and the US.
Image source: Ryan Stuart Article source: Australian Financial Review
OFFICE VALUES RISE AS JOBS FILLS TOWERS •
Australian prime grade CBD office values have increased by 34 per cent over the past three years
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Secondary grade commercial property has performed even more strongly, with a 41 per cent increase
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In Sydney’s and Melbourne’s core markets, values have risen by 61 per cent for prime office property and 74 per cent for secondary.
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Yield compression has been the key factor driving values up, with a drop of 129 basis points in Sydney over the three-year period.
Article source: Australian Financial Review
CONDITIONS FOR OFFICE DEMAND REMAIN RESILIENT IN THE FACE OF GLOBAL UNCERTAINTY •
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According to Dexus Research, companies are focusing more on the positive conditions in Australia and New South Wales than the negative global factors regarding leasing decisions. Leasing enquiries have been stronger than normal. The last quarter has seen a slight improvement on take-up with net absorption being negative 7,000 square metres for the three months to March 2018.
Article source: Dexus Research