Viewpoint

Australia Viewpoint - Melbourne office heightened incentives to hold until 2022, May 2021

May 18, 2021

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  • Incentives across both Melbourne’s CBD and suburban markets have risen to levels not seen since the early 90s, with prime CBD incentives anticipated to reach 39% by Q4 2021.

 

  • The primary drivers of incentives increases has been,
    • business contraction, due to an uptake in the adoption of flexible working;
    • a dramatic rise in sublease availabilities, and;
    • the highest increase in net new supply on record in Melbourne in 2020

 

  • These factors will persist, and incentives are forecast to continue to rise throughout 2021, albeit at a slower rate, before beginning to recover in 2022.