Tenants Prefer Off-CBD Spaces

A survey conducted by Colliers International revealed that although Sydney remains a favourable choice for tenants, they prefer spaces that are outside the central business district.

According to the office tenant survey, occupants regard Sydney offices favourably. The office market report of Property Council of Australia also showed that demand for north shore’s A- and B-grade stock is still positive.

Glenn Byres said Chatswood vacancy increased to three percent because new supply and additional demand. 14,428 square meters were added by demand requires 4,326 square meters of space.  He added that more than 17,000 square meters of extra space in north shore is expected to be available by the second half of the year.

Byres is the Property Council NSW executive director.

According to the Colliers International survey, tenants prefer spaces outside of the central business district because spaces are bigger and off-CBD is perceived to have limited exposure to financial conditions affecting the economy.

Doug Henry said off-CBD tenants also believe global economic factors also have limited impact on their leasing decisions with 44 percent of the respondents saying that the global economic woes have no impact of their businesses.

Thirty-one percent of CBD tenants, meanwhile, said global economic conditions have affected how they lease their spaces.

Henry is Colliers International’s corporate solutions national director.

Another survey showed that 47 percent of off-CBD tenants believe their businesses are faring better than their CBD counterparts. Tenants also perceive that vacancy rates in CBD would increase soon.

Henry also said that off-CBD tenants are generally more optimistic about their financial conditions.