Outlook 2023 Australia

RENT (AUD/SQM/YR) AND RENT GROWTH (% PER ANNUM) MELBOURNE RENT GROWTH

FORECAST

600

15.0%

 Prime Melbourne CBD office rents returned to growth in 2022.  The growth was supported by a rise in the average face rent on the completion of new developments.  Net incentives have also compressed a little from 40.5% to 39.5% over 2022.  Looking forward, demand growth and limited supply should support ongoing rent growth.

500

10.0%

400

5.0%

300

0.0%

200

-5.0%

100

-10.0%

0

-15.0%

2020

2021

2022F 2023F 2024F 2025F 2026F AUD/SQM/YR Rent growth (%)

Source: Cushman & Wakefield