Cushman & Wakefield’s National Director, Chas Keogh, said Melbourne’s office leasing sector struggles have been exaggerated.
According to Keogh, Melbourne has actually reached over 1 million sqm of occupied premium stock for the first time, with two pivotal truths set to unfold in 2024.
“Firstly, the essence of transactions lies in fitted spaces, with 85% of all deals concluded by Cushman & Wakefield being for fitted space (circa 150 by year-end), including both spec and existing fit-outs,” Mr Keogh said.
“If it isn’t sky rise A or premium grade, that percentage will be above 90%.
“Secondly, the divergent nature of the market means assets, where owners are investing, are delivering results, those that aren’t committing capital to meet the needs of occupiers are struggling to secure new tenants and retain existing ones.”
He said that rather than being a year of setbacks, 2023 was a year of resilience for Melbourne’s office sector.
