Sydney, NSW, Australia

Australian cities have taken out the top two spots for lowest global office market vacancy rates,according to Colliers International’s Global Office Real Estate Review 2008.

The biannual report on 122 office markets across the globe tracks stock levels, new supply under construction, vacancy rates, occupancy costs, capital values and yields.

Colliers International Commercial Research Director Felice Spark reported that Perth had recorded the lowest vacancy in the world, now at 0.5%, for the second time running, while Brisbane has moved up the list to the record the second-lowest vacancy at 0.7%.

Kiev in Ukraine came in third with the lowest vacancy rate in Europe at 0.8%, followed closely by Bogota, Columbia at 0.9%.

In other regions, Abu Dhabi has the lowest vacancy rate in the Middle East at just 1.0% and Calgary, Canada recorded the lowest vacancy rate in North America at 3.2%,

Ms Spark said the decreasing vacancy had clearly delivered a flow on effect on rental rates for available space, in the incredibly tight A Grade market.

“Rents for available A-grade office space in Brisbane are now not only the most expensive in Australia, but they are among the most expensive in the world,” Ms Spark said.

Brisbane soared into #14 position for A grade rents at $83.32 USD/ square foot.  Perth followed closely, coming in 19th while Sydney ranked 25th.

While the Australian results may worry some prospective tenants, they are a long way behind the most expensive office market in the world - London’s West End where A grade rents are $208.82 USD on a per square foot per annum basis.

Hong Kong, London City, Singapore and Tokyo make up the other top five most expensive cities. while New York’s Midtown is the 10th most expensive.

The Colliers International Report found top Gross Rent (in US/PSF/Year) paid in the world for office space is in Hong Kong for $306, followed by Moscow at $301 and London’s West End at $288.

On the construction front, Dubai was found to have the most office development under construction in the world at present, with 3,688,000 square metres under construction.

Three of the top five cities found to have the largest amount of office development under construction were all in China: Shanghai (2,876,000sqm), Guangzhou (2,846,000sqm) and Beijing (1,678,000sqm), while two cities in Russia, being Moscow and Saint-Petersburg also place in the top 10.

Of the top 20 cities with the lowest yields in the world currently, 17 of the cities were located in Europe.  Yields ranged from an average low of 3.6% in Tokyo and Hong Kong (sharing #1) to 5.0% in New York’s Midtown (#20).

About Colliers International

Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 10,092 employees span the world in 267 offices in 57 countries. On a worldwide basis, Colliers manages 672,945,918 square feet, and has revenue of $US 1,620,958,349.

Contact Information

Phoebe Miller
National Communications Manager

Tel: 02 9257 0276

Mob: 0402 547 484

Email: phoebe.miller@colliers.com

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