Outlook 2023 Australia

MELBOURNE DEMAND & VACANCY

NET ABSORPTION (SQM) AND VACANCY RATE (%)

FORECAST

14.0%

80,000

 Office employment is expected to expand in the Melbourne CBD over 2022 as the economy continues to reopen from pandemic induced restrictions.  Employment growth is expected to remain positive, however, the rise in flexible working and downside economic risks may limit demand growth.  Positive demand and limited supply should result in the vacancy moving lower over in 2022 before stabilising.

12.0%

60,000

10.0%

40,000

8.0%

20,000

6.0%

0

4.0%

-20,000

2.0%

-40,000

0.0%

-60,000

2020

2021

2022F 2023F 2024F 2025F 2026F Net Absorption Vacancy Rate

Source: Cushman & Wakefield