Of­fice mar­ket gets con­fi­dence boost

Townsville Bulletin - - NEWS -

CON­FI­DENCE in the Townsville of­fice mar­ket is start­ing to move with a pick- up in over­all busi­ness con­fi­dence, ac­cord­ing to Her­ron Todd White.

In its July Month in Re­view, the prop­erty con­sul­tant says the en­try level of­fice sales mar­ket is driven by af­ford­abil­ity and priced in the sub$ 500,000 bracket.

Prices start at around $ 350,000 for con­verted dwelling prop­er­ties in sec­ondary sub­ur­ban lo­ca­tions.

The re­port says there are some small strata pro­fes­sional of­fices priced in the sub$ 500,000 range but that gen­er­ally there is lim­ited stock of­fered to the mar­ket.

Most ac­tiv­ity in this sec­tor comes from owner- oc­cu­piers.

In Cairns, the of­fice mar­ket is rel­a­tively shal­low and ex­pe­ri­ences lim­ited sales ac­tiv­ity.

The mar­ket has also ex­pe­ri­enced lim­ited new de­velop- ment. The last large of­fice build­ing con­structed in Cairns was the State Govern­ment of­fice tower com­pleted in 2010 with no ap­par­ent new de­vel­op­ments in the pipe­line.

“Com­mer­cial prop­erty sales in Cairns, in­clu­sive of re­tail and com­mer­cial of­fice premises, re­main well be­low the peak lev­els achieved in the 2005 to 2007 pe­riod,” the re­port said.

“Nev­er­the­less the mar­ket has been slowly re­build­ing in sales vol­ume since 2010.”

The re­port said prices paid for strata- ti­tled premises had been rel­a­tively sta­ble since 2010 at around $ 2500 to $ 3000 per square me­tre of floor area.

Most new of­fice space leas­ing de­mand is for smaller ar­eas and for mod­ern, good- qual­ity green star- rated premises.

These build­ings achieve high lev­els of oc­cu­pancy and sta­ble rent lev­els.

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