According to Graystone’s latest SEQ Urban Precincts Report, business confidence in the suburban office market has jumped two index points compared to the previous quarter.
The report is based on a survey of suburban businesses in the region’s three business technology precincts—Brisbane Technology Park in Eight Mile Plans, Westlink Green in Darra, and Northshore Hamilton.
Graystone director of developments and property management, Kirsty Heymink, the confidence in the suburban office sector was resulting in consistent, low vacancy rates across Graystone-managed buildings in the three precincts.
She said that while the leasing profile of suburban office parks had changed dramatically in the past year, the vacancy rate of its portfolio under management had improved to 5.8 per cent. By comparison, the most recent figures show Brisbane CBD’s vacancy rate has risen to 13.6 per cent.
“The size and nature of workspaces have changed, and we have the flexibility and scale to adapt with our tenants,” Heymink said.
“With this flexibility comes new opportunities to better understand the needs of a concentrated suburban workforce and play to our advantages of open spaces, ample parking and proximity to major transport.”
Stronghold’s Bruce Anderson said urban densification also had enabled suburban office precincts to offer the same live-work-play dynamic that was once only available in the CBD, with greater flexibility.
“While we anticipate demand for office space will return to pre-Covid-19 levels, the way these spaces are utilised will see the biggest change,” he said.
“Fundamentally, the office will need to provide flexibility not only for the business, but also their employees. The pandemic has simply sped up this trend.”
Article Source: www.theurbandeveloper.com