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