Melbourne MarketBeat Reports

CBD Office

• Rents and incentive levels remain stable as quality office accommodation options remain available in Melbourne’s CBD.
• The slow return of white-collar workers into Melbourne's office buildings has frustrated occupancy levels for much of 2022. In a market where workers arguably have the upper hand, flexibility around remote working has become a feature for consideration in the current workspace, and the management of hybrid working.
• Larger occupiers investigating options now, significantly earlier than expiry, in an attempt to bring their workers back to the office and to attract limited talent to their businesses, will essentially bring future net absorption levels forward and likely accelerate a recovery of the office market

Metro Office

• Melbourne's fringe has an opportunity to supply Melbourne with greater diversity around workplace options as we move into a hybrid working environment and more emphasis is being placed of the Social aspect of ESG principals
• As the CBD continues to bring new stock to an oversupplied market with buildings designed around tenant expectations prior to the pandemic, the new fringe markets of Richmond and Cremorne through to Collingwood and Fitzroy, are uniquely positioned to deliver smaller assets best suited to the traditional fringe tenant but with a focus on engaging with the community, particularly around the curation of retail or third space experiences on the ground floors.
• Expected growth in creative and tech industry based employment is expected to support the suburban office market generally, but will have particular influence on the inner fringe to the east, which is fast becoming a precinct known for high tech, Silicon Yarra.