As the office markets turn and vacancy climbs, the better buildings slowly lease up and the lesser quality buildings struggle. Like clockwork the narrative turns to repurposing the buildings that are struggling to other uses. But is this real and is this the answer? Repurposing works when...
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CRE tenants consider ESG in varying degrees when making new office decisions. The biggest tenants consider it more than the local small business for 2 main reasons; resources and the cost. The good thing is that it is not out of reach as the below shows. We...
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High office vacancy rates around the world have everyone talking about what to do with older and more obsolete office buildings. Recently Carter Jonas (agency) reported that “close to 20% of UK offices are likely to be unlettable to the majority of occupiers with investment because...
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At the onset of the pandemic predictions of massive office subleasing swirled throughout the office markets as many occupiers quickly contemplated putting a lot of sublease space on the market. Some did. In the back half of 2020, expert forecasts during the Corenet Global State of...
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On Saturday night the local Greek hall held an event. The sound of the piano accordion reminded me of the theory we developed in San Francisco in the early 1990’s about how CRE tenants moved in and out of the Financial District (CBD) office market. When...
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Last week we spent 3 days in the middle of Queensland with Capricorn Space searching for property. We covered about 1000 kms in 2 days and worked as we travelled. We even had connectivity almost 200 kms from the nearest main regional centre. This got us...
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Earlier this year, I had the privilege of moderating the CoreNet Global, State of the CRE Market panels; Sydney, Melbourne, Brisbane, Adelaide and Perth. Canberra will hopefully be included in the next tour. Moderating these panels, absorbing audience insights, and talking to market participants provides...
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Over many years, withdrawal of stock has averaged about 1.0% - 1.5% of stock each year. There are exceptions. During the period of 2016 to 2020 (the “Spike” as we call it), withdrawals were much higher; averaging around 2.5-3.0% of stock per annum. This huge withdrawal...
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Total office stock in the Sydney CBD today is approximately 5,200,000 m2. Approximately 170,000 m2 (3%) of stock is being added to the market this year and about 50,000 m2 (1%) in 2023. For the years 2024 to 2028 there are about 500,000 m2 + of...
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In previous posts about office and redundancy (The office isn’t dead but how redundant is it?), we highlighted that real positive net absorption (not enquiry demand) in the Sydney CBD has been slowly decreasing for decades. However, absorption always jumps when vacancy is high, and the...
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