In the wake of the pandemic, corporate tenants are increasingly seeking higher-class office spaces, leading to the "great office upgrade." This shift reflects the desire for flexibility and better amenities, which have become more affordable.
Premium-grade office towers have experienced strong leasing demand, up 3.9% year-on-year, while lower-quality buildings have seen a decline. Australian office tenants are actively upgrading their workplaces to meet post-pandemic requirements, emphasising the need for market-relevant facilities and high-quality experiences.
Prime markets have rebounded, reaching 80% of pre-pandemic levels in terms of space take-up. Rental growth in prime markets increased by 3.3% last year, with higher incentives for tenants. However, incentives are expected to plateau as new supply decreases.
Upgrading your office aligns with the changing needs of businesses and attracts corporate tenants eager to entice employees back to the office.
Embrace the great office upgrade and invest in your workspace today.