CBRE Research’s Office Sector Trends H1 2021 Report uses a combination of data from Property Council Australia and proprietary CBRE Research to provide insights into occupier behaviour across Australian CBD markets in H1 2021, analysing tenant movements by industries and motivations. Additionally, the report includes details regarding leasing sentiment and activity for main office markets throughout H1 2021.
Overall, although activity has been relatively subdued, occupiers are showing more preparedness to be active in leasing markets by evolving their real estate portfolios for a post-pandemic office environment. The Public Administration and Professional Service sectors were among the most lively throughout the first half of the year.
National gross absorption fell 4% annually from H1 2020 to H1 2021; however national net tenant movement improved, despite further contraction among major industries like the Finance and Professional Service sectors. Overall the rate of contraction has slowed, and a selection of sectors, such as Health Care and Public Administration, are using the current rental conditions to expand and/or consolidate locations.
Sydney recorded its highest volumes in tenant moves in H1 2021, driven by development completions, whilst Canberra recorded the largest y-o-y increase of any city during H1 2021.