Figures | Adaptive Spaces

Australian Office Market Q1 2023

May 28, 2023

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Key Points:

  • Labour market has weakened slightly, with the unemployment rate up to 3.7% in April 2023
  • National rental growth stabilised with CBD effective rents up just 0.2% q-o-q in Q1 2023. However, there has been a large discrepancy between markets.
  • Incentives were largely stable across the market, with Melbourne observing further rises.
  • Sublease availability rose by approximately 3.0% (+7,000sqm) in Q1 2023 to reach 255,000 sqm. This remains about 40% below the national peak in early 2021.
  • The investment market was subdued in Q1 2023, registering just $863 million worth of transactions.
  • There are a number of assets in the market at the moment, which may provide further guidance on where new pricing benchmarks are at in the higher interest rate environment.