Commercial Property Outlook 2008

Crowded city commercial markets will continue to push office rents higher as tenants battle for space.

With expectations that vacancy rates in all capital cities will fall below four per cent, and with little significant new commercial stock coming onto the market in 2008, predictions are that rents will rise by between 10 and 20 per cent through the year. Rental growth rates for commercial real estate will be particularly strong in Brisbane and Perth, on the back of limited supply and the mining boom, with more a moderate level of growth in Sydney and Adelaide.

Lack of available commercial space and rising rents are also expected to see space used more intensively, with compressed work spaces, particularly in Brisbane and Perth.

Property Outlook 2008:

• Australian Capital Territory
• New South Wales
• Northern Territory
• Queensland
• Victoria
• Western Australia
• South Australia