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DEXUS Office Demand Barometer - A bright start to 2017

People & Companies / Latest News

Australia

Feb 13 2017

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DEXUS Research has released its DEXUS Office Demand Barometer for the December 2016 quarter – A bright start to 2017. A positive reading signals that there could be a strong rebound in demand for office space in the Sydney CBD in the first half of 2017 after a small contraction in Q4 2016.

Peter Studley, DEXUS General Manager, Research said: “Positive business confidence, an improvement in the US economy, a lift in job advertisements and a firmer share market are all promising signs for office demand.

“The lift in job advertisements is a sign that companies are preparing to hire more in 2017 after a period of subdued full time employment growth. And a firmer share market typically encourages corporate transaction activity. 

“The Barometer moved from ‘Fair’ to ‘Good’ after registering a positive 1.8% in the September 2016 quarter, up 0.4% from the previous quarter.

“Despite a small contraction in overall demand in the December quarter, there has been solid enquiry from the finance, business services, property services and the IT sectors.

“Demand for premium office space in the Sydney CBD was strong as tenants sought higher quality office accommodation, however this came at the expense of migration from the lower grades. The flight to quality is expected to continue given the withdrawal of an estimated 283,000sqm of older stock over the next three years.

“Given the constrained supply pipeline the Sydney office market is poised for a decline in vacancy and a further lift in rents.”

 

About Dexus

DEXUS has more than 30 years of expertise in property investment, development and asset management. Visit http://www.dexus.com/ for more information.

SOURCE: Press Release

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