- Office market is ready for rebound
- Demand is shifting to higher quality property
- Investa has released its 2022 Office Market Outlook
The office-based business sector is equipped for a strong rebound in 2022 but will need to face the challenges that come with a ‘new future of work’, according to a new report released by Investa.
The 2022 Office Market Outlook, highlights Australia’s strong economic resilience throughout the challenges of the last year which signals the capacity for the office-based business sector to see a rebound in 2022.
David Cannington, Head of Research & Strategy at Investa believes office employers will continue to adapt with flexible work options but that demand for high quality-office office space will persist.
“Australia’s major CBD office markets are primed to rebound in 2022.”
David Cannington, Investa Head of Research & Strategy
“Following the negative impact of COVID-19 and lockdown restrictions on office leasing markets through 2021, office leasing demand and occupancy rates are expected to strengthen as Australia adjusts to COVID-normal life,” Mr Cannington said.
“These office leasing trends are expected to support outperformance in Australia’s CBD prime office markets in the coming years.
“While Australian office work will continue to embrace workplace flexibility on a permanent basis, office leasing activity has revealed a solid underlying tenant preference for high-quality, sustainable and well-located office space.
Investa’s research has observed a flight to quality trend in the demand for office space as tenant preferences shift to larger office spaces that can accommodate flexible work practices.
Australian CBD Office Occupancy & Business Conditions/Confidence
Flexible work practices are however expected to create an estimated 5-10% drag on office space absorption according to the report.
