The ups and downs of Melbourne Commercial Real Estate reflects the boom and bust cycles Melbourne and the global economy is experiencing. While new offices space and commercial real estate have been soaked up fast, there are again increasing vacancies.
The vacancy rate for Melbourne office space had hit a 20-year low, causing a rise in rental rates. Good news for investors. However, by now it has gotten better for those planning to rent premises.
The release of large new office buildings over the last few years had spread fears that this would cause an over supply and weaken the rental market. However, Melbourne has caught up with this growth and these fears have not been realized. Vacancy rates are at their lowest since the 1980s, but the pressure has gone off now.
Into the future, the steady growth in tenant demand is expected to continue. Melbourne commercial real estate is experiencing a thriving economy and a large proportion of office space under construction is already committed.
The good news is that, although rents are rising, they had been very low for some time because of oversupply. This means that you can rent offices at an exceptionally good value, with its rents still a lot cheaper than Brisbane, Sydney or Perth.
As a result, many companies settling or expanding in Australia choose Melbourne as their administrative centre.
Retail business together with Melbourne commercial real estate is booming, - there is an explosion of new retail and residential developments in the CBD and other centers.
More city laneways are being rejuvenated and bringing new retail opportunities with them. You can still open a small affordable shop in these areas and have a great entry point into retail.
For the Melbourne visitor, the great point about these laneway shops is that they further contribute to the charming Melbourne CBD feel. Melbournes retail expansion is also flowing over into Southbank and Docklands shops.
Overall the CBD is becoming more alive with these retail developments, - becoming even more appealing to metropolitan, national and international visitors.
Industrial land is available in Melbourne. Please see a commercial agent for more detail, or click here.
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