Vacancy declined by 1.6 per cent between January and July, driven by 38,785 square metres of demand – almost four times greater than Brisbane's historical average of 10,165 square metres. The decrease was also the sharpest drop in the country over the same period. By comparison, the national CBD vacancy rate increased by 0.1 per cent to 14.9 per cent.
Property Council Queensland Executive Director Jess Caire said the results were a vote of confidence in the unique workplace experience provided by offices and the resilience of the Brisbane CBD.
"These results reflect conversations we've been having with members for some time. Brisbane is enjoying strong and persistent demand for quality office space, and the city needs a continued pipeline of new office development to keep pace with growth," Ms Caire said.
"Brisbane's CBD vacancy rate is trending downwards despite the opening of new office space at 205 North Quay last year, followed more recently by 360 Queen Street."
"Recent office transactions confirm Brisbane remains an attractive destination for investors and reinforce the importance of maintaining conditions that support new office development. Office buildings do far more than provide workspace. They support jobs, productivity, CBD activation and the surrounding hospitality and retail businesses that help our city thrive."
Ms Caire said today's results were a reminder that building Queensland's future required investment friendly tax and planning settings if governments wanted to fully cash in on Brisbane's growth story.
"These results highlight the importance of consolidating Brisbane's position as an attractive place to invest and develop. If we want to capitalise on Brisbane's momentum, we need property tax, council rate and planning settings that encourage investment and the next wave of office projects."
Office vacancies in Brisbane's fringe markets increased slightly over the six months to July, rising to 11.6 per cent off the back of CIMIC Group relocating from 520 Wickham Street to 12 Creek Street. Ms Caire said the move confirmed the trend of a flight to city approach for businesses looking to grow and retain talent at the same time.
"The flight to the city is real, with businesses increasingly choosing Brisbane's CBD as they grow and invest in their future. Without a strong supply of new office available, office rents and the cost of doing business is likely to increase."
Elsewhere, the Gold Coast took out the title as Australia's hottest office market in July, recording the lowest office vacancy rate anywhere in the nation at 7.3 per cent, down from 7.7 per cent in January.
