After a tough period for CBD property around the country, a leading valuer is starting to see tenants finally return.

Incentives Are Driving Tenants Back into CBD Office Space

Herron Todd White (HTW) notes that large incentives on offer from owners have made the inner-city locations incredibly appealing.

Because of the lack of demand for office space – particularly in the Melbourne CBD – face rents are under pressure leading to incentives growing to as much as 30-40 percent, depending on leasing lengths.

“As the CBD vacancy rates rise, along with incentives, we expect to see a flight to quality out of the suburbs and fringe CBD locations and into the high-quality CBD office spaces on offer for roughly the same total occupancy cost,” HTW said.

By Published On: February 21, 2022Categories: Social0 CommentsTags: