Demand for office space in Australia has increased over the past few months as investors become more confident about the country's economic growth fundamentals, a new report has claimed.
The Property Council's latest Office Market Report explained that total office vacancy declined to 9.5 per cent over the half year to January 2011. Added to this, net absorption was 302,673sqm over six months to January 2011.
Peter Verwer, chief executive officer of the firm, said that the result was representative of a renewed demand for office space.
"In a short period we have moved from a rapidly shrinking market to one in which demand is growing at almost twice the historical average," he explained.
"Tenants are making decisions again. Many occupiers are primed for expansion and favourable leasing incentives are persuading businesses to reassess leasing opportunities. Over the six months to January 2011, the lift in demand for office space was strong enough to produce the first vacancy decrease in the Australian office market for three years," said Mr Verwer.