Demand for office space increased by 11% during the first half of 2022, with enquiries recorded reaching more than 1.622 million sqm, according to Colliers.
The increase in demand was driven by a post lockdown appetite for the over 3,000 sqm market in particular, with an additional 61,000 sqm enquired for in H1 2022 compared to H1 2021.
Interest in other office size segments also increased, with a 4% boost in enquiries for space under 1,000 sqm and a 22% increase for office space between 1,000-2,999 sqm.
Simon Hunt, Managing Director Office Leasing at Colliers, said they had witnessed a record amount of demand for office space in the first half of 2022.
“It’s promising to see businesses continuing to engage with the market across all office space sizes,” Hunt said.
East Coast CBD markets proved to be the most popular locations, with the Sydney CBD, Melbourne CBD and Brisbane CBD all witnessing a rise in demand for H1 2022 compared to the same period last year.
Brisbane CBD experienced the highest increase in demand, with a 175% increase on office area enquired for and a 48% increase on the number of enquiries.
“Similar to Sydney and Melbourne, Brisbane tenants are looking for accommodation that will attract their talent back to the office and therefore are seeking high quality spaces with a prime location and best-in-class amenity,” Matt Kearney, National Director Office Leasing, Brisbane CBD at Colliers said.
“All markets, segments and industries are experiencing growth as an air of positivity flows throughout the market.”
Enquiries for office space in the Sydney CBD and Melbourne CBD also indicated that businesses seeking space were seeking more area, with these markets recording an 11% and a 35% increase, respectively.
“The major factor driving enquiry is the ‘flight to quality’ as Tenants of all size ranges seek out better quality office accommodation to assist with the return-to-work story, along with the battle for staff retention and attraction given the competitive labour market,” Andrew Beasley, National Director Office Leasing, Melbourne CBD said.