Tasmanian devil forrest
The office vacancy rate in Hobart only roared by one percent. Photo: David Clode, Unsplash
  • Office vacancy rate in Hobart of just 5.1 per cent, the lowest in the country
  • Only one per cent increase over the past year
  • Increase mostly caused by the increase in office space, not by reduced demand

According to the Property Council of Australia’s latest Office Market Report, the Tasmanian capital has the lowest office vacancy rate of any capital city in Australia at just 5.1 per cent.

Despite the pandemic, the rate only increased by one per cent over the past year.

To put this into perspective, the same report reveals Melbourne’s CBD vacancy rate is 8.2 per cent and Sydney’s 8.6 per cent. Perth is now at 20%.

Rebecca Ellston, Tasmanian Executive Director of the Property Council – who only recently took on the role – said the rate reflected the strength of Hobart’s economy.

“To have emerged from 2020 with the tightest office market in the country is a great vote of confidence in the Tasmanian economy and the Hobart CBD,” Ms Ellston said.

“It is a clear demonstration of the resilience of Tasmanian businesses and highlights the importance of the CBD to Hobart’s recovering economy.”

Ms Ellston remarked that the vacancy was predominantly caused by an increase in new office space – as opposed to reduced demand from tenants. Only a third of the increase was caused by this decrease in demand.

“We can expect tight conditions to continue, with very little new office space in the pipeline. Currently, there is only one new building expected to come online in 2021,” she said.

“Despite these positive numbers, there are still some businesses who are yet to bring their staff back to the office and we urge them to consider doing so.”

She wants to encourage more businesses to return staff back to the CBD to support retailers and other small businesses in the CBD.

“A return to office will ensure the Hobart CBD continues to play its integral role as a major commercial hub, and further boost the local economy.”

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