A lack of new supplies means that activities that take up large floor space will be limited this year. A total of 510,000 sq. ft. of office space will be completed in 2020, marking a 14-year low. The majority of completions in 2020 will be situated in decentralised locations, meaning that core locations are unlikely to see dramatic reductions in asking rentals as supply remains strained in these districts.
New supply in Central will remain low over the next 3 years. The next significant developments due for completion are Murray Road cap park redevelopment (2022) and Hutchinson House redevelopment (2023), which will add approx. 700,000 sq. ft. of prime office space.
With the new supply of approx. 1M sq. ft. due to come onto the market in 2021 and further development in the pipeline for 2022 and 2023, it is likely that 2020 will be a year of transitions. Corporations will look to study their longer-term office plans and decide whether there remains a necessity to occupy a CBD location, or whether it is worth restructuring and confirming brand new spaces ahead of completion in 2021.
Upcoming New Supply