PODCAST: Here’s why office leasing is looking up
Leasing activity, business confidence keeps market upbeat
The clouds of economic uncertainty brought on by COVID-19 are shifting to reveal improved prospects for office leasing in Australia as business confidence improves and appetite for office space rebuilds.
Though the overall net take-up of office space remained negative at 116,000 square metres in the three months to December 2020, it had contracted less than the previous three quarters of the year - a sign that business sentiment is improving, particularly with the vaccine due in March.
Perth and Canberra were the only two main cities to record positive net take-up of office space, according to JLL’s latest data, with Perth businesses that once priced out of the CBD now returning, and the government fuelling Canberra’s recovery.
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“The second and third quarters of last year were a real rabbit in the headlights moment for the office sector as everyone was trying to come to terms with exactly what we were facing,” says Tim O’Connor, JLL’s head of office leasing in Australia. “But in the last quarter we saw more activity and larger pre-commit deals close, particularly by organisations whose decision-making is based on-shore. There's a real motivation by organisations to get their people back into the office.”
Listen to Andrew Ballantyne, head of research – Australia, and Tim O’Connor, as they give insights on office leasing, including sublease space, changing office footprints, and the future of city centres in this episode of the Perspectives podcast, hosted by Rebecca Kent.
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