While new office supply was limited to one refurbishment completion in H1 2022 delivering 6,200 sqm, new supply in the industrial market remained elevated at almost 78,000sqm which has also been matched by strong demand.
Office demand continues to favour high quality flexible space although multiple occupiers released underutilised Prime space for sublease in the first half of the year. Weak demand persists for lower quality Secondary grade options unless recently refurbished.
Vacancy remained below 1% in industrial and 2% in most retail centre types and generally sits between 8% and 16% in CBD and Non CBD office.
With the exception of industrial rents, which experienced continued strong growth in the first half of the year, net effective rental changes remained modest in most sectors.
Although the lack of widespread transaction evidence continues to hamper calls on where market yields are at, our latest assessments show a generally increasing pace of interest rate driven easing in yields, with material differences emerging at sector and submarket levels.