Australia prime office rents up 1% in Q2

This is the strongest growth since Q3 2023.

According to a Colliers report, Q2 2024 has recorded the strongest quarterly prime net effective rental growth in Australia since Q3 2023 at 1.0%. The Q2 result was attributed to net face rental growth (1.1%), as opposed to any changes to incentives. 

Average Premium net face rents recorded a stronger uplift (1.4%) compared to A-grade (0.9%) as tenants continue to relocate to better quality premises. 

“Average prime incentives nationally remained stable at 41% for two consecutive quarters, although pressure remains within precincts where high vacancy persists. Conversely, we may start to see a slight decrease in incentive levels in locations where leasing options are starting to diminish. This was evident in the Brisbane CBD over Q2 where strong leasing conditions resulted in a drop in average prime incentives over Q2 from 39% to 38%,” the report said.