Sydney leads office market rebound, JLL reports

For the first time in four years, more workplace space was occupied in the last quarter in all Australian major central business districts than was left vacant – a clear signal that the nation’s office market is gaining momentum, writes Nick Lenaghan in The Australian Financial Review.

According to JLL, Sydney is leading the resurgence, with prime building rents rising 9.1 percent over the past financial year. Investa is harnessing this recovery through the Investa Commercial Property Fund (ICPF), which delivered its second consecutive quarter of positive returns – outperforming the annual benchmark by 3.1 percent.

Investa has leased close to 100,000 sqm across our portfolio, while recent CBD transactions led by Investa – such as Daibiru's acquisition of 135 King Street, UOL Group and Singapore Land Group's investment in 388 George Street, and BGO’s purchase of 10–20 Bond Street – signal renewed conviction and early-cycle positioning.

Peter Menegazzo, CEO at Investa says, “This leasing momentum is translating into performance. With valuations below replacement cost and new supply constrained by elevated construction costs, vacancy is tightening, and effective rents are rising – a trend expected to continue.

“The market is on an upward trajectory. Fundamentals are strengthening, leasing momentum is real, and investor confidence is returning with high-conviction capital already moving.”

Read the full article here: https://www.commercialrealestate.com.au/news/race-for-space-spurs-cbd-office-rebound-1400290/