It seems 2017 has seen a continuation of strong tenant demand and increasing office rents.
Office markets are still reeling from the effects of substantial stock withdrawals that has seen office space permanently lost to alternative uses, namely residential conversions.
In some cases this has seen some suburban office markets such as Burwood & Ashfield dwindle away to absurdity.
These tenants have had to seek alternative locations to more established office markets such as Sydney and Parramatta.
This tenant demand is already adding to upward pressure on office rents namely secondary stock within these markets.
In fact we envisage significant rental growth within B & C grade stock as tenants try to position themselves within these markets.
This upward pressure on office rents have positively impacted the strata market as tenants especially those within the 200-400m² requirement bracket considering the purchase side of occupation.
We envisage by the close of 2017, strata rates will commonly be above the $10,000+ per m² mark, depending on precinct and grade.
Overall, tenants with an upcoming lease expiry within the next 18 months should strongly consider their spatial options sooner rather than.
To discuss and determine your office space requirements please call the team on our Sydney Office number on 02 8039 9888.