Business Tenants in Australia are expecting a massive increase in the cost of renting their office space as shortages of quality office space (particularly in CBDs) shifts the pricing “power” back in favour of landlords.
In Sydney, the asking price for prestigious office space that is currently under construction is rumoured to be up to $1400 a square metre.
The anticipated rise in the costs of office space is typical of a market coming out of a recession and reflects the fact that relatively few new development projects have been started in the past couple of years.
Melbourne’s premium rent is more like $550 per sq m, but independent adviser Urbis has predicted a rise of about 10-12 per cent over the next two years.
Australia’s major cities remain among the most expensive in the world for parking space fees and office accommodation – a reflection in the lack of supply and the expected rise in demand for office space as numbers of white-collar workers rise.
DTZ’s 13th annual Global Occupancy Costs report, highlights six Australian cities that are among the world’s 100 most expensive.
According to the report, Sydney’s ranking has increased from position 45 in 2009 to 23 in the latest data – putting it well ahead of many international business precincts including downtown New York, Brussels and Berlin.
Melbourne jumped from rank 86 in 2009 to 53 in 2010. Brisbane is ranked 29, followed by Perth (32), Canberra (73) and Adelaide (80).
SpaceOut continues to offer a realistic alternative for people searching for cheap and convenient office space to rent.
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