What’s in store for CBD office in 2021 and beyond?
As we all no doubt can recall, the impact of Covid-19 hit Australians hard and fast back in March 2020. The way out of Covid-19 is so much different – long and slow and still hampered by so much risk and uncertainty. Vaccination programs will take time, a large part of the workforce continue to embrace their newfound flexibility, Australian borders are still mostly shut, and there remains timeline as to when we can expect a return to pre-Covid travel freedoms. So, a great question to pose now that we have some solid data to see the first year’s impact on CBD office occupancy, is what does the next few year’s look like?
Overseas migrants - will they return and where will they live?
It is no secret that Australia’s economic growth has long benefited from very strong population growth vis-à-vis our developed country peers. As property is all about providing spaces for people, it is fairly simple logic that the more people calling Australia home, the stronger demand we will see for property. So, a key question for understanding the outlook for property in Australia is understanding a) if migrants will return once borders re-open, and b) arguably even more importantly, what the distribution of migrants around Australia could look like?
Primed for success - which metro office locations will tenants prefer?
There’s a famous saying in property – location, location, location. It is likely that metro office markets will take on a more prominent economic role in our cities, as many workers question the need to travel (sometimes long distances) to a CBD location each day. And when it comes to the emergence of office precincts in Metro markets around the country, the importance of location will be paramount.