Quarter Time National Office Q3/2018 -...
Transcript of Quarter Time National Office Q3/2018 -...
savills.com.au/research
Quarter TimeNational Office Q3/2018
Savills Research Australia
CBD Averages – A Grade
National Office
N.F. Rent N.E. Rent Market Yield IRR Cap. Value
Sydney CBD 1,065 (8.7%) 845 (7.6%) 4.75 (-40bps) 6.65 (-25bps) 20,300 (6.8%)
Melbourne CBD 580 (6.4%) 430 (8.9%) 5.20 (-20bps) 6.75 (-15bps) 10,000 (5.3%)
Brisbane CBD 540 (-) 290 (-) 6.00 (-65bps) 7.00 (-100bps) 9,800 (8.9%)
Perth CBD 565 (-) 290 (-1.7%) 7.00 (-50bps) 7.50 (-50bps) 8,000 (1.3%)
Adelaide CBD 370 (-) 210 (-19.2%) 7.25 (-25bps) 8.25 (-) 5,000 (-)
Canberra Civic 370 (-) 290 (-) 6.25 (-15bps) 7.90 (-25bps) 7,300 (7.4%)
Note: 12 month change shown in brackets
Trends Detailed
Sales Activity:$16.223bn183 Sales ($10m+)
Leasing Activity989,222 sq m261 Leases (1,000sq m+)
Employment12.52m2.5% growth
Q3/2018
savills.com.au/research 2
Savills Research | Quarter Time – National Office
National CBD Average Yield and IRR vs 10yr Bond Rate
Source: RBA, Savills Research
National CBD A Grade - Average Yield Spread over 10yr Bond Rate and IRR Multiple
Source: RBA, Savills Research
Report ContentsNational Indicator Summary 3Office Economic Drivers 5National Sales Activity 6National Leasing Activity 7
State Indicators and Major ActivityNew South Wales 8Victoria 11Queensland 14Western Australia 17South Australia 20Australian Capital Territory 23
Client Data & Information Portal 25Key State Contacts 26
National Head –Capital Strategy & Research
Chris [email protected]
Associate Director – Capital Strategy & Research
Shrabastee [email protected]
For our latest national reports, visit savills.com.au/research
To join Savills Research mailing list, please email [email protected]
Q3/2018
savills.com.au/research 3
Savills Research | Quarter Time – National Office
Fringe Market Averages – A Grade
National Office
N.F. Rent N.E. Rent Market Yield IRR Cap. Value
North Sydney 840 (7.0%) 650 (14.0%) 5.25 (-50bps) 6.80 (-45bps) 15,300 (27.5%)
Macquarie Park 370 (2.8%) 270 (5.9%) 5.75 (-50bps) 7.00 (-40bps) 7,000 (16.7%)
Parramatta 545 (18.5%) 450 (21.6%) 5.50 (-65bps) 6.90 (-35bps) 10,300 (37.3%)
St Kilda 435 (11.5%) 355 (16.4%) 5.90 (-35bps) 6.90 (-35bps) 6,800 (15.3%)
Brisbane Fringe 445 (-) 230 (-4.2%) 6.25 (-65bps) 7.65 (-50bps) 8,500 (1.2%)
Sunshine Coast 330 (-) 260 (-) 7.65 (-100bps) 9.75 (-) 4,000 (-7.0%)
Gold Coast 350 (7.7%) 245 (4.3%) 8.15 (-35bps) 9.50 (-) 4,800 (11.6%)
West Perth 325 (-) 180 (-5.3%) 7.50 (-50bps) 8.00 (-40bps) 4,100 (-)
Adelaide Fringe 345 (-) 260 (-) 7.50 (-25bps) 8.65 (-) 4,400 (-)
Canberra Non-Civic 335 (-8.2%) 250 (-16.7%) 7.00 (-) 8.40 (-10bps) 6,300 (-)
Note: 12 month change shown in brackets
National Face Rents, Effective Rents and Incentive Comparison – A Grade Average
12 Month Net Effective Rental & Capital Growth – A Grade Average
North Sydney
Macquarie Park
Parramatta
St Kilda
Brisbane Fringe
Sunshine Coast
Gold Coast
West Perth
Adelaide Fringe
Canberra Non-Civic
North Sydney
Macquarie Park
Parramatta
St Kilda
Brisbane Fringe
Sunshine Coast
Gold Coast
West Perth
Adelaide Fringe
Canberra Non-Civic
Q3/2018
savills.com.au/research 4
Savills Research | Quarter Time – National Office
Yield and IRR Spread to Bond Rates – A Grade Average
Typical Capital Value Range ($/sq m) – A Grade Average
Capital Value CAGRs by Period – A Grade Average (Historic)
Note: CAGR = Compound Annual Growth Rate
Effective Rental CAGRs by Period – A Grade Average (Historic)
-5%
0%
5%
10%
15%
20%
SydneyCBD
MelbourneCBD
BrisbaneCBD
Perth CBD AdelaideCBD
CanberraCivic
1yr 3yr CAGR 5yr CAGR 10yr CAGR
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
SydneyCBD
MelbourneCBD
BrisbaneCBD
Perth CBD AdelaideCBD
CanberraCivic
1yr 3yr CAGR 5yr CAGR 10yr CAGR
-5%
0%
5%
10%
15%
20%
SydneyCBD
MelbourneCBD
BrisbaneCBD
Perth CBD AdelaideCBD
CanberraCivic
1yr 3yr CAGR 5yr CAGR 10yr CAGR
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
SydneyCBD
MelbourneCBD
BrisbaneCBD
Perth CBD AdelaideCBD
CanberraCivic
1yr 3yr CAGR 5yr CAGR 10yr CAGR
-5%
0%
5%
10%
15%
20%
SydneyCBD
MelbourneCBD
BrisbaneCBD
Perth CBD AdelaideCBD
CanberraCivic
1yr 3yr CAGR 5yr CAGR 10yr CAGR
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
SydneyCBD
MelbourneCBD
BrisbaneCBD
Perth CBD AdelaideCBD
CanberraCivic
1yr 3yr CAGR 5yr CAGR 10yr CAGR
-5%
0%
5%
10%
15%
20%
SydneyCBD
MelbourneCBD
BrisbaneCBD
Perth CBD AdelaideCBD
CanberraCivic
1yr 3yr CAGR 5yr CAGR 10yr CAGR
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
SydneyCBD
MelbourneCBD
BrisbaneCBD
Perth CBD AdelaideCBD
CanberraCivic
1yr 3yr CAGR 5yr CAGR 10yr CAGR
Q3/2018
savills.com.au/research 5
Savills Research | Quarter Time – National Office
Office Sector Economic Drivers
Net Absorption vs. Growth in Prof. Job Advertisements
Note: Net Absorption to Dec-17, Job Adverts to Aug-18
Annual Growth in Employment
Note: CAGR = Compound Annual Growth Rate
Summary of State Economic Indicators
Key State Indicators (%) Latest NSW VIC QLD WA SA ACT AUS
SFD / GDP Growth Jun-18 5.0 (3.0) 3.7 (1.8) 1.3 (1.8) 4.0 (2.0) 4.4 (2.6) 5.0 (3.0) 2.9 (2.6)
Population Growth Mar-18 2.2 (2.1) 1.7 (1.8) 0.8 (1.9) 0.7 (0.9) 2.1 (1.9) 2.2 (2.1) 1.6 (1.6)
Employment Growth Aug-18 2.5 (2.2) 2.3 (1.3) 1.0 (1.4) 1.8 (0.7) 0.9 (1.3) 2.5 (2.2) 2.5 (1.6)
Unemployment Rate Aug-18 5.3 (5.7) 6.1 (5.8) 6.1 (5.1) 5.8 (6.1) 3.8 (3.9) 5.3 (5.7) 5.4 (5.5)
CPI (Inflation) Jun-18 2.5 (2.2) 1.7 (2.2) 1.1 (1.8) 2.7 (2.1) 2.8 (2.0) 2.5 (2.2) 2.1 (2.1)
Job Adverts (Total) Aug-18 11.0 (-3.4) 8.0 (-7.4) 16.0 (-6.4) 1.7 (-7.3) 5.8 (1.3) 11.0 (-3.4) 8.2 (-4.7)
Job Adverts (Prof) Aug-18 12.7 (-2.2) 11.3 (-6.3) 18.0 (-6.9) 15.2 (-4.9) 6.5 (1.9) 12.7 (-2.2) 11.6 (-4.1)
Source: ABS / DOE / Savills Note: Annual change shown, 10yr compound average in brackets; Note: Economic growth numbers are on a rolling annual basis; Employment growth is on
trend terms
(50%)
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
(300,000)
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000Sydney CBD Melbourne CBD Brisbane CBDPerth CBD Adelaide CBD CanberraProf. Job Ads
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000 F/T Employed P/T Employed
1.7%
5.8%
5.8%
6.4%
8.0%
8.2%
10.0%
11.0%
16.0%
SA
ACT
NSW
TAS
QLD
AUS
NT
VIC
WA
0.9%
1.0%
1.1%
1.8%
2.3%
2.5%
2.5%
3.0%
3.6%
ACT
WA
TAS
SA
QLD
AUS
VIC
NT
NSW
(50%)
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
(300,000)
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000Sydney CBD Melbourne CBD Brisbane CBDPerth CBD Adelaide CBD CanberraProf. Job Ads
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000 F/T Employed P/T Employed
1.7%
5.8%
5.8%
6.4%
8.0%
8.2%
10.0%
11.0%
16.0%
SA
ACT
NSW
TAS
QLD
AUS
NT
VIC
WA
0.9%
1.0%
1.1%
1.8%
2.3%
2.5%
2.5%
3.0%
3.6%
ACT
WA
TAS
SA
QLD
AUS
VIC
NT
NSW
Annual Growth in Professional Job Advertisements - % (to Aug-18)
Annual Growth in Employment by State - % (to Aug-18)
(50%)
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
(300,000)
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000Sydney CBD Melbourne CBD Brisbane CBDPerth CBD Adelaide CBD CanberraProf. Job Ads
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000 F/T Employed P/T Employed
1.7%
5.8%
5.8%
6.4%
8.0%
8.2%
10.0%
11.0%
16.0%
SA
ACT
NSW
TAS
QLD
AUS
NT
VIC
WA
0.9%
1.0%
1.1%
1.8%
2.3%
2.5%
2.5%
3.0%
3.6%
ACT
WA
TAS
SA
QLD
AUS
VIC
NT
NSW
(50%)
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
(300,000)
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000Sydney CBD Melbourne CBD Brisbane CBDPerth CBD Adelaide CBD CanberraProf. Job Ads
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000 F/T Employed P/T Employed
1.7%
5.8%
5.8%
6.4%
8.0%
8.2%
10.0%
11.0%
16.0%
SA
ACT
NSW
TAS
QLD
AUS
NT
VIC
WA
0.9%
1.0%
1.1%
1.8%
2.3%
2.5%
2.5%
3.0%
3.6%
ACT
WA
TAS
SA
QLD
AUS
VIC
NT
NSW
Q3/2018
savills.com.au/research 6
Savills Research | Quarter Time – National Office
National Sales Activity
Reported Transaction Activity – Sales $10m+
Top Recent 15 Sales by Value ($m)
Top Recent 15 Sales by $/sq m
$0bn
$2bn
$4bn
$6bn
$8bn
$10bn
$12bn
$14bn
$16bn
$18bn
$20bn NSW VIC QLD WA SA ACT
0%
20%
40%
60%
80%
100%
Purchasers VendorsFund TrustDeveloper Owner OccupierGovernment SyndicateForeign Investor Private InvestorOther
418.00
277.60250.00 240.00
170.00 160.00135.00 122.00 110.00 101.35 95.25 93.88 93.00 82.17 71.00 70.00 61.00 49.00 41.00 40.00
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25,000 24,498 20,266 19,886
14,957 14,789 13,041 12,036 11,961 11,580 11,444 11,353 10,818 10,403 9,598 9,563 8,295 7,918 7,772
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$0bn
$2bn
$4bn
$6bn
$8bn
$10bn
$12bn
$14bn
$16bn
$18bn
$20bn NSW VIC QLD WA SA ACT
0%
20%
40%
60%
80%
100%
Purchasers VendorsFund TrustDeveloper Owner OccupierGovernment SyndicateForeign Investor Private InvestorOther
418.00
277.60250.00 240.00
170.00 160.00135.00 122.00 110.00 101.35 95.25 93.88 93.00 82.17 71.00 70.00 61.00 49.00 41.00 40.00
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- $41
8.00
m
60 S
tatio
n St
, Par
ram
atta
, NSW
-Au
g-18
- $2
77.6
0m
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ng S
t, Fo
rtitu
de V
alle
y, Q
LD -
Sep-
18 -
$170
.00m
105
York
St,
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h M
elbo
urne
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C - S
ep-1
8 - $
49.0
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217
Geor
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t, Br
isban
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Sep-
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$30.
36m
107
Ove
rton
Rd,
Will
iam
sLa
ndin
g, V
IC -
Jul-1
8 - $
25.9
3m
115
Batm
an S
t, W
est
Mel
bour
ne, V
IC -
Sep-
18 -…
277
Will
iam
St,
Mel
bour
ne, V
IC -
Jul-1
8 - $
93.8
8m
$0bn
$2bn
$4bn
$6bn
$8bn
$10bn
$12bn
$14bn
$16bn
$18bn
$20bn NSW VIC QLD WA SA ACT
0%
20%
40%
60%
80%
100%
Purchasers VendorsFund TrustDeveloper Owner OccupierGovernment SyndicateForeign Investor Private InvestorOther
418.00
277.60250.00 240.00
170.00 160.00135.00 122.00 110.00 101.35 95.25 93.88 93.00 82.17 71.00 70.00 61.00 49.00 41.00 40.00
80 A
nn S
t, Br
isban
e, Q
LD(5
0.0%
) - Ju
l-18
- $11
,353
/sq
m
60 S
tatio
n St
, Par
ram
atta
, NSW
- Aug
-18
- $10
,818
/sq
m
1 Su
ssex
St,
Sydn
ey, N
SW -
Jul-
18 -
$25,
000/
sq m
275
Geor
ge S
t, Sy
dney
, NSW
-Au
g-18
- $3
2,87
7/sq
m
2 Ki
ng S
t, Fo
rtitu
de V
alle
y, Q
LD- S
ep-1
8 - $
10,4
03/s
q m
60 C
ollin
s St,
Mel
bour
ne, V
IC -
Sep-
18 -
$11,
580/
sq m
12-2
6 Fr
ankl
in S
t, Ad
elai
de, S
A(5
0.0%
) - A
ug-1
8 - $
7,23
6/sq
m
383
La T
robe
St,
Mel
bour
ne,
VIC
- Sep
-18
- $11
,961
/sq
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343
Albe
rt S
t / 1
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urbo
t St,
Brisb
ane,
QLD
- Ju
l-18
-…
60 F
linde
rs S
t, Ad
elai
de, S
A -
Aug-
18 -
$6,4
43/s
q m
260
Que
en S
t, Br
isban
e, Q
LD -
Aug-
18 -
$7,3
64/s
q m
277
Will
iam
St,
Mel
bour
ne, V
IC- J
ul-1
8 - $
7,77
2/sq
m
40 T
ank
St, B
risba
ne, Q
LD -
Aug-
18 -
$14,
957/
sq m
60 P
itt S
t, Sy
dney
, NSW
- Au
g-18
- $1
9,88
6/sq
m
80 M
ount
St,
Nort
h Sy
dney
,NS
W -
Sep-
18 -
$11,
444/
sq m
52 C
ollin
s St,
Mel
bour
ne, V
IC -
Sep-
18 -
$20,
266/
sq m
80 D
ixon
St,
Sydn
ey, N
SW -
Aug-
18 -
$24,
498/
sq m
105
York
St,
Sout
h M
elbo
urne
,VI
C - S
ep-1
8 - $
9,59
8/sq
m
60 Q
ueen
St,
Brisb
ane,
QLD
-Se
p-18
- $1
3,04
1/sq
m
235-
237
Ryrie
St,
Geel
ong,
VIC
-Ju
l-18
- $4,
819/
sq m
32,877
25,000 24,498 20,266 19,886
14,957 14,789 13,041 12,036 11,961 11,580 11,444 11,353 10,818 10,403 9,598 9,563 8,295 7,918 7,772
275
Geor
ge S
t, Sy
dney
, NSW
-Au
g-18
- $2
40.0
0m
1 Su
ssex
St,
Sydn
ey, N
SW -
Jul-
18 -
$250
.00m
80 D
ixon
St,
Sydn
ey, N
SW -
Aug-
18 -
$61.
00m
52 C
ollin
s St,
Mel
bour
ne, V
IC -
Sep-
18 -
$70.
00m
60 P
itt S
t, Sy
dney
, NSW
- Au
g-18
- $82
.17m
40 T
ank
St, B
risba
ne, Q
LD -
Aug-
18 -
$93.
00m
362
Little
Col
lins S
t, M
elbo
urne
,VI
C - S
ep-1
8 - $
14.0
5m
60 Q
ueen
St,
Brisb
ane,
QLD
-Se
p-18
- $4
1.00
m
2 M
illen
nium
Blv
d, C
arin
dale
,Q
LD -
Sep-
18 -
$28.
20m
383
La T
robe
St,
Mel
bour
ne, V
IC- S
ep-1
8 - $
122.
00m
60 C
ollin
s St,
Mel
bour
ne, V
IC -
Sep-
18 -
$160
.00m
80 M
ount
St,
Nort
h Sy
dney
,NS
W -
Sep-
18 -
$71.
00m
80 A
nn S
t, Br
isban
e, Q
LD(5
0.0%
) - Ju
l-18
- $41
8.00
m
60 S
tatio
n St
, Par
ram
atta
, NSW
-Au
g-18
- $2
77.6
0m
2 Ki
ng S
t, Fo
rtitu
de V
alle
y, Q
LD -
Sep-
18 -
$170
.00m
105
York
St,
Sout
h M
elbo
urne
,VI
C - S
ep-1
8 - $
49.0
0m
217
Geor
ge S
t, Br
isban
e, Q
LD -
Sep-
18 -
$30.
36m
107
Ove
rton
Rd,
Will
iam
sLa
ndin
g, V
IC -
Jul-1
8 - $
25.9
3m
115
Batm
an S
t, W
est
Mel
bour
ne, V
IC -
Sep-
18 -…
277
Will
iam
St,
Mel
bour
ne, V
IC -
Jul-1
8 - $
93.8
8m
Q3/2018
savills.com.au/research 7
Savills Research | Quarter Time – National Office
National Leasing Activity
Reported Leasing Activity by CBD – Leases 1,000sq m+
Leasing Composition by Type – Leases 1,000sq m+ Leasing Composition by Grade – Leases 1,000sq m+
Top 20 Recent Leases 1,000sq m+
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000 Sydney - CBD Melbourne - CBDBrisbane - CBD Perth - CBDAdelaide - CBD Canberra
Retail & W'Sale 55,112sqm - 5.7%
IT & Comm 88,816sqm - 9.2%
Mining & Util. 118,108sqm - 12.3%
Business Serv. 209,260sqm - 21.7%
Govt. 210,704sqm - 21.9%
Fin & Ins 258,979sqm - 26.9%
Direct - 583,534sqm -59.2%
Precommit - 338,725sqm- 34.4%
Renewal - 53,910sqm -5.5%
Sublease - 9,148sqm -0.9%
Assignment - sqm - 0.0%
Premium - 159,725sqm -18.9%
Grade A - 521,847sqm -61.9%
Grade B - 144,213sqm -17.1%
Grade C - 10,429sqm -1.2%
Grade D - 7,440sqm - 0.9%
39,600
13,2009,720 9,600 9,527 9,500 9,198 8,664 7,800 7,099 6,750 6,625 6,414 5,405 5,250 4,304 4,200 3,600 3,500 3,126
Sunc
orp,
QLD
Wor
kSaf
e Vi
ctor
ia, V
IC
AMP,
VIC
CBus
Sup
er, V
IC
HDY/
NRF,
NSW
JB H
i-Fi G
roup
, VIC
Woo
d Gr
oup,
WA
Deut
sche
Ban
k, N
SW
Reec
e Gr
oup,
VIC
Dow
ner E
DI, Q
LD
Aeso
p, V
IC
DXC
Tech
nolo
gies
, QLD
Depa
rtm
ent o
f Vet
eran
s Affa
irs, Q
LD
New
cres
t Min
ing,
VIC
WeW
ork,
VIC
Fair
Wor
k O
mbu
dsm
an, V
IC
Regu
s, NS
W
Telst
ra S
uper
, VIC
Built
, NSW
Stat
e Go
vern
men
t of V
ictor
ia,
Min
ister
of F
inan
ce, V
IC
Precom Direct & Other
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000 Sydney - CBD Melbourne - CBDBrisbane - CBD Perth - CBDAdelaide - CBD Canberra
Retail & W'Sale 55,112sqm - 5.7%
IT & Comm 88,816sqm - 9.2%
Mining & Util. 118,108sqm - 12.3%
Business Serv. 209,260sqm - 21.7%
Govt. 210,704sqm - 21.9%
Fin & Ins 258,979sqm - 26.9%
Direct - 583,534sqm -59.2%
Precommit - 338,725sqm- 34.4%
Renewal - 53,910sqm -5.5%
Sublease - 9,148sqm -0.9%
Assignment - sqm - 0.0%
Premium - 159,725sqm -18.9%
Grade A - 521,847sqm -61.9%
Grade B - 144,213sqm -17.1%
Grade C - 10,429sqm -1.2%
Grade D - 7,440sqm - 0.9%
39,600
13,2009,720 9,600 9,527 9,500 9,198 8,664 7,800 7,099 6,750 6,625 6,414 5,405 5,250 4,304 4,200 3,600 3,500 3,126
Sunc
orp,
QLD
Wor
kSaf
e Vi
ctor
ia, V
IC
AMP,
VIC
CBus
Sup
er, V
IC
HDY/
NRF,
NSW
JB H
i-Fi G
roup
, VIC
Woo
d Gr
oup,
WA
Deut
sche
Ban
k, N
SW
Reec
e Gr
oup,
VIC
Dow
ner E
DI, Q
LD
Aeso
p, V
IC
DXC
Tech
nolo
gies
, QLD
Depa
rtm
ent o
f Vet
eran
s Affa
irs, Q
LD
New
cres
t Min
ing,
VIC
WeW
ork,
VIC
Fair
Wor
k O
mbu
dsm
an, V
IC
Regu
s, NS
W
Telst
ra S
uper
, VIC
Built
, NSW
Stat
e Go
vern
men
t of V
ictor
ia,
Min
ister
of F
inan
ce, V
IC
Precom Direct & Other
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000 Sydney - CBD Melbourne - CBDBrisbane - CBD Perth - CBDAdelaide - CBD Canberra
Retail & W'Sale 55,112sqm - 5.7%
IT & Comm 88,816sqm - 9.2%
Mining & Util. 118,108sqm - 12.3%
Business Serv. 209,260sqm - 21.7%
Govt. 210,704sqm - 21.9%
Fin & Ins 258,979sqm - 26.9%
Direct - 583,534sqm -59.2%
Precommit - 338,725sqm- 34.4%
Renewal - 53,910sqm -5.5%
Sublease - 9,148sqm -0.9%
Assignment - sqm - 0.0%
Premium - 159,725sqm -18.9%
Grade A - 521,847sqm -61.9%
Grade B - 144,213sqm -17.1%
Grade C - 10,429sqm -1.2%
Grade D - 7,440sqm - 0.9%
39,600
13,2009,720 9,600 9,527 9,500 9,198 8,664 7,800 7,099 6,750 6,625 6,414 5,405 5,250 4,304 4,200 3,600 3,500 3,126
Sunc
orp,
QLD
Wor
kSaf
e Vi
ctor
ia, V
IC
AMP,
VIC
CBus
Sup
er, V
IC
HDY/
NRF,
NSW
JB H
i-Fi G
roup
, VIC
Woo
d Gr
oup,
WA
Deut
sche
Ban
k, N
SW
Reec
e Gr
oup,
VIC
Dow
ner E
DI, Q
LD
Aeso
p, V
IC
DXC
Tech
nolo
gies
, QLD
Depa
rtm
ent o
f Vet
eran
s Affa
irs, Q
LD
New
cres
t Min
ing,
VIC
WeW
ork,
VIC
Fair
Wor
k O
mbu
dsm
an, V
IC
Regu
s, NS
W
Telst
ra S
uper
, VIC
Built
, NSW
Stat
e Go
vern
men
t of V
ictor
ia,
Min
ister
of F
inan
ce, V
IC
Precom Direct & Other
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000 Sydney - CBD Melbourne - CBDBrisbane - CBD Perth - CBDAdelaide - CBD Canberra
Retail & W'Sale 55,112sqm - 5.7%
IT & Comm 88,816sqm - 9.2%
Mining & Util. 118,108sqm - 12.3%
Business Serv. 209,260sqm - 21.7%
Govt. 210,704sqm - 21.9%
Fin & Ins 258,979sqm - 26.9%
Direct - 583,534sqm -59.2%
Precommit - 338,725sqm- 34.4%
Renewal - 53,910sqm -5.5%
Sublease - 9,148sqm -0.9%
Assignment - sqm - 0.0%
Premium - 159,725sqm -18.9%
Grade A - 521,847sqm -61.9%
Grade B - 144,213sqm -17.1%
Grade C - 10,429sqm -1.2%
Grade D - 7,440sqm - 0.9%
39,600
13,2009,720 9,600 9,527 9,500 9,198 8,664 7,800 7,099 6,750 6,625 6,414 5,405 5,250 4,304 4,200 3,600 3,500 3,126
Sunc
orp,
QLD
Wor
kSaf
e Vi
ctor
ia, V
IC
AMP,
VIC
CBus
Sup
er, V
IC
HDY/
NRF,
NSW
JB H
i-Fi G
roup
, VIC
Woo
d Gr
oup,
WA
Deut
sche
Ban
k, N
SW
Reec
e Gr
oup,
VIC
Dow
ner E
DI, Q
LD
Aeso
p, V
IC
DXC
Tech
nolo
gies
, QLD
Depa
rtm
ent o
f Vet
eran
s Affa
irs, Q
LD
New
cres
t Min
ing,
VIC
WeW
ork,
VIC
Fair
Wor
k O
mbu
dsm
an, V
IC
Regu
s, NS
W
Telst
ra S
uper
, VIC
Built
, NSW
Stat
e Go
vern
men
t of V
ictor
ia,
Min
ister
of F
inan
ce, V
IC
Precom Direct & Other
Q3/2018
savills.com.au/research 8
Savills Research | Quarter Time – National Office
New South Wales
Sydney CBD Key Indicators
Sydney CBD Premium A Grade B Grade
Low High Low High Low High
Rental – Gross Face ($/sq m) 1,265 1,665 1,160 1,330 1,000 1,150
Rental – Net Face ($/sq m) 1,050 1,450 980 1,150 850 1,000
Incentive Level Gross 18 21 15 20 15 20
Rental – Net Effective ($/sq m) 800 1,125 775 915 675 800
Outgoings – Operating ($/sq m) 140 155 110 130 80 110
Outgoings – Statutory ($/sq m) 55 75 50 65 45 60
Outgoings – Total ($/sq m) 195 230 160 195 125 170
Typical Lease Term 8 10 5 10 5 7
Yield – Market (% Net Face Rental) 4.38 4.75 4.50 5.00 4.50 5.25
IRR (%) 6.38 6.63 6.50 6.75 6.25 6.75
Cars Permanent Reserved ($/pcm) 990 1,080 900 1,070 720 790
Office Capital Values ($/sq m) 22,500 30,000 18,500 22,000 13,500 20,000
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
PCA OMR Statistics (Jun-18)
Sydney CBD North Sydney Parramatta Macquarie Park AUS CBD
Total Stock 5,036,168 810,430 719,619 869,034 17,907,541
Total Vacancy 232,151 50,993 22,872 47,334 1,539,867
Vacancy (%) 4.6 (7.3) 6.3 (8.7) 3.2 (7.3) 5.4 (8.9) 9.2 (9.2)
Net Absorption (12m) 9,489 (27,754) -10,325 (2,851) 20,442 (9,736) 21,379 (19,635) 149,309 (170,353)
Net Absorption (%) 0.2 (0.6) -1.3 (0.4) 3.0 (1.5) 2.7 (2.8) 0.9 (1.1)
Stock Additions 82,627 2,148 26,136 8,935 269,072
Stock Withdrawals 144,817 14,214 12,849 13,594 364,875
Net Additions -62,190 (30,823) -12,066 (1,094) 13,287 (7,299) -4,659 (18,385) -91,750 (282,957)
Net Additions (%) -1.2 (0.6) -1.5 (0.1) 1.9 (1.1) -0.5 (2.4) -0.5 (1.7)
Source: PCA / Savills Research Note: 10yr Average shown in brackets
Q3/2018
savills.com.au/research 9
Savills Research | Quarter Time – National Office
North Shore Key Indicators
North Shore
North SydneyA Grade
North SydneyB Grade
Macquarie ParkA Grade
Low High Low High Low High
Rental – Gross Face ($/sq m) 915 1,040 805 905 435 535
Rental – Net Face ($/sq m) 775 900 675 775 320 420
Incentive Level Net 20 25 20 30 25 30
Rental – Net Effective ($/sq m) 600 700 505 580 230 305
Outgoings – Operating ($/sq m) 90 110 80 100 65 85
Outgoings – Statutory ($/sq m) 35 40 35 40 35 45
Outgoings – Total ($/sq m) 125 150 115 140 100 130
Typical Lease Term 7 10 3 7 5 8
Yield – Market (% Net Face Rental) 5.00 5.50 5.50 6.00 5.50 6.00
IRR (%) 6.63 7.00 7.00 7.50 6.75 7.25
Cars Permanent Reserved ($/pcm) 550 650 475 550 225 275
Cars Permanent ($/pcm) 500 550 400 500 0 0
Office Capital Values ($/sq m) 13,000 17,500 11,000 12,500 6,500 7,500
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
Parramatta Key Indicators
ParramattaA Grade B Grade
Low High Low High
Rental – Gross Face ($/sq m) 635 705 545 605
Rental – Net Face ($/sq m) 510 580 425 485
Incentive Level Net 15 20 15 20
Rental – Net Effective ($/sq m) 420 480 350 400
Outgoings – Operating ($/sq m) 80 90 75 85
Outgoings – Statutory ($/sq m) 35 45 35 45
Outgoings – Total ($/sq m) 115 135 110 130
Typical Lease Term 5 10 3 7
Yield – Market (% Net Face Rental) 5.25 5.75 5.75 6.50
IRR (%) 6.75 7.00 7.00 7.50
Cars Permanent Reserved ($/pcm) 270 320 225 275
Cars Permanent ($/pcm) 200 250 200 250
Office Capital Values ($/sq m) 9,500 11,000 7,000 9,000
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
Q3/2018
savills.com.au/research 10
Savills Research | Quarter Time – National Office
Top Recent Notable Sales
Property Price ($m) | Date | NLA (sq m) Yield | Type | $/sq m
275 Kent St, Sydney (50%) 860.00 | Jun-18 | 77,503 4.50 | i | 22,193
2 Market St, Sydney (50%) 300.00 | Mar-18 | 40,178 n.a | n.a | 14,934
100 Miller St (Northpoint Tower), North Sydney (50%) 300.00 | Jun-18 | 35,145 4.73 | r | 17,072
60 Station St, Parramatta 277.60 | Aug-18 | 25,660 5.34 | r | 10,818
179 Elizabeth St, Sydney 265.00 | May-18 | 16,520 5.14 | e | 16,041
55 Clarence St, Sydney 255.00 | Apr-18 | 14,962 3.60 | r | 17,043
1 Sussex St, Sydney 250.00 | Jul-18 | 10,000 n.a | n.a | 25,000
275 George St, Sydney 240.00 | Aug-18 | 7,300 4.50 | r | 32,877
52 Goulburn St, Sydney (50%) 176.00 | Mar-18 | 23,034 5.15 | e | 15,282
117 Clarence St, Sydney 153.00 | Jun-18 | 12,517 5.22 | e | 12,223
187 Thomas St, Haymarket 145.80 | Apr-18 | 23,275 2.99 | i | 6,264
77 Pacific Hwy, North Sydney 112.35 | May-18 | 9,392 n.a | n.a | 11,962
Piers 8/9 23 Hickson Rd, Sydney 90.50 | Jun-18 | 8,523 6.11 | e | 10,618
60 Pitt St, Sydney 82.17 | Aug-18 | 4,132 n.a | n.a | 19,884
80 Mount St, North Sydney 71.00 | Sep-18 | 6,204 4.32 | i | 11,444
Yield Types: i = Initial, r = Reported, e = Equated, v = Vacant, dev = development; * Includes >$30 m in compensation beyond market value.
Top Recent Notable Leases
Property Tenant Date | NLA (sq m) Type | Rent | Term
72 Christie St, St Leonards Mastercard May-18 | 12,000 Direct | n.a | 10
10 Carrington St, Sydney Allianz Jul-18 | 10,820 Precommit | n.a | 10
1 Sussex St, Sydney WeWork Jul-18 | 10,000 Precommit | n.a | n.a.
60 Martin Pl, Sydney HDY/NRF Aug-18 | 9,527 Precommit | 1,250 (G) | 10
126 Phillip St, Sydney Deutsche Bank Sep-18 | 8,664 Renewal | n.a | 8
60 Union St, Pyrmont The Star Entertainment Group Dec-17 | 6,617 Direct | 864 (G) | 11
60 Miller St, North Sydney Flight Centre Mar-18 | 6,600 Direct | 830 (G) | 8
50 Miller St, North Sydney US Consulate General Sydney May-18 | 6,000 Direct | n.a | 12
1 Denison St, North Sydney SAP Jun-18 | 5,706 Precommit | 750 (N) | 10
101 Miller St, North Sydney Allianz Australia Services Feb-18 | 5,654 Direct | 746 (N) | 5
383 George St, Sydney WeWork Mar-18 | 5,211 Direct | 965 (N) | 12
183-185 Clarence St, Sydney Built Sep-18 | 3,500 Precommit | 1,115 (G) | n.a.
220 George St, Sydney Poly Group Sep-18 | 2,500 Precommit | 1,450 (G) | 8
60 Martin Pl, Sydney Banco Chambers Aug-18 | 2,500 Precommit | 1,400 (G) | 10
255 Pitt St, Sydney hipages Group Sep-17 | 3,788 Direct | 913 (G) | 6
Leasing Types: p = Pre-commitment, d = Direct, s = Sub-Lease, r = Renewal
Q3/2018
savills.com.au/research 11
Savills Research | Quarter Time – National Office
Victoria
Melbourne CBD Key Indicators
Melbourne CBD (City Core)Premium A Grade B Grade
Low High Low High Low High
Rental – Gross Face ($/sq m) 750 1,020 685 805 550 625
Rental – Net Face ($/sq m) 560 830 520 640 410 485
Incentive Level (Net) 20 27 24 28 22 26
Rental – Net Effective ($/sq m) 430 635 385 475 310 370
Outgoings – Operating ($/sq m) 115 135 100 110 85 109
Outgoings – Statutory ($/sq m) 60 70 55 60 37 47
Outgoings – Total ($/sq m) 175 205 155 170 122 156
Typical Lease Term 6 10 5 8 3 7
Yield – Market (% Net Face Rental) 4.75 5.05 4.95 5.40 5.00 5.70
IRR (%) 6.50 6.85 6.50 7.00 6.75 7.25
Cars Permanent Reserved ($/pcm) 550 800 500 700 450 600
Cars Permanent ($/pcm) 450 600 450 600 420 500
Office Capital Values ($/sq m) 10,000 15,000 8,000 12,000 7,000 10,000
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
PCA OMR Statistics (Jun-18)
Melbourne CBD St Kilda Rd Southbank East Melbourne AUS CBD
Total Stock 4,541,855 654,648 421,930 177,461 17,907,541
Total Vacancy 162,652 48,723 25,890 5,463 1,539,867
Vacancy (%) 3.6 (6.6) 7.4 (10.6) 6.1 (6.9) 3.1 (2.9) 9.2 (9.2)
Net Absorption (12m) 122,144 (72,407) 13,869 (-9,958) 4,687 (2,896) 400 (-109) 149,309 (170,353)
Net Absorption (%) 2.9 (1.8) 2.3 (-1.5) 1.2 (0.8) 0.2 (-0.1) 0.9 (1.1)
Stock Additions 81,755 9,346 42,719 - 269,072
Stock Withdrawals 64,498 21,979 25,531 - 364,875
Net Additions 17,257 (77,351) -12,633 (-10,135) 17,188 (4,675) (-82) -91,750 (282,957)
Net Additions (%) 0.4 (1.9) -1.9 (-1.4) 4.2 (1.2) 0.0 (0.0) -0.5 (1.7)
Source: PCA / Savills Research Note: 10yr Average shown in brackets
Q3/2018
savills.com.au/research 12
Savills Research | Quarter Time – National Office
Melbourne – St Kilda Rd Key Indicators
Melbourne – St Kilda RdA Grade B Grade
Low High Low High
Rental – Gross Face ($/sq m) 510 595 455 515
Rental – Net Face ($/sq m) 390 475 340 400
Incentive Level (Net) 16 21 15 22
Rental – Net Effective ($/sq m) 320 385 275 325
Outgoings – Operating ($/sq m) 65 75 60 70
Outgoings – Statutory ($/sq m) 50 50 45 50
Outgoings – Total ($/sq m) 115 125 105 120
Typical Lease Term 3 6 3 5
Yield – Market (% Net Face Rental) 5.75 6.00 6.00 6.25
IRR (%) 6.75 7.00 7.00 7.25
Cars Permanent Reserved ($/pcm) 300 330 280 320
Office Capital Values ($/sq m) 5,500 8,000 5,000 6,000
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
Melbourne – Suburban Key Indicators
Melbourne – SuburbanA Grade B Grade
Low High Low High
Rental – Gross Face ($/sq m) 480 530 375 420
Rental – Net Face ($/sq m) 375 425 275 320
Incentive Level (Net) 15 19 15 20
Rental – Net Effective ($/sq m) 310 355 225 265
Outgoings – Operating ($/sq m) 50 70 50 60
Outgoings – Statutory ($/sq m) 35 55 40 45
Outgoings – Total ($/sq m) 85 125 90 105
Typical Lease Term 4 8 3 5
Yield – Market (% Net Face Rental) 6.10 6.90 6.30 6.80
IRR (%) 7.00 7.50 7.00 7.50
Cars Permanent Reserved ($/pcm) 185 215 150 190
Office Capital Values ($/sq m) 6,100 7,600 4,500 5,500
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
Q3/2018
savills.com.au/research 13
Savills Research | Quarter Time – National Office
Top Recent Notable Sales
Property Price ($m) | Date | NLA (sq m) Yield | Type | $/sq m
697 Collins St (Two Melbourne Quarter), Docklands 550.00 | Mar-18 | 46,349 n.a | n.a | 11,866
60 Collins St, Melbourne 160.00 | Sep-18 | 13,817 n.a | n.a | 11,580
383 La Trobe St, Melbourne 122.00 | Sep-18 | 10,200 5.70 | i | 11,961
637 Flinders St (World Trade Centre), Docklands 122.00 | Feb-18 | 23,049 7.00 | r | 5,293
699 Bourke St, Docklands (50.0%) 102.00 | Apr-18 | 18,644 n.a | n.a | 10,942
160 Harbour Esplanade, Docklands 100.00 | Jun-18 | 7,980 5.30 | r | 12,531
Cnr Sturt St & Southbank Blvd, Southbank 95.38 | Feb-18 | 11,679 n.a | n.a | 8,167
464 St Kilda Rd, Melbourne 95.38 | Apr-18 | 13,827 5.16 | r | 6,898
277 William St, Melbourne 93.88 | Jul-18 | 12,080 5.70 | i | 7,772
601 Bourke St, Melbourne 70.10 | May-18 | 8,082 4.93 | r | 8,674
52 Collins St, Melbourne 70.00 | Sep-18 | 3,454 n.a | n.a | 20,266
10 Queens Rd, Melbourne 60.00 | Jun-18 | 9,004 5.00 | r | 6,664
600 Church St, Cremorne 50.00 | Jun-18 | 5,667 n.a | n.a | 8,823
105 York St, South Melbourne 49.00 | Sep-18 | 5,105 5.10 | r | 9,598
Yield Types: i = Initial, r = Reported, e = Equated, v = Vacant, dev = development
Top Recent Notable Leases
Property Tenant Date | NLA (sq m) Type | Rent | Term
697 Collins St, Docklands Energy Australia Mar-18 | 22,000 Precommit | n.a | n.a.
1 Malop St, Geelong WorkSafe Victoria Sep-18 | 13,200 Direct | 480 (N) | 15
695 Collins St, Docklands AMP Sep-18 | 9,720 Precommit | n.a | n.a.
130 Lonsdale St, Melbourne CBus Super Sep-18 | 9,600 Precommit | n.a | 12
1-3 Southgate Ave, Southbank JB Hi-Fi Group Sep-18 | 9,500 Direct | n.a | n.a.
17-21 Harcourt Pde, Cremorne MYOB Mar-18 | 8,800 Precommit | 500 (N) | 10
57-61 Balmain St, Cremorne Reece Group Sep-18 | 7,800 Precommit | n.a | n.a.
658 Church St, Cremorne Starbucks, 7-Eleven & Withers Group Jul-18 | 7,400 Direct | n.a | n.a.
2-16 Northumberland St, Collingwood Aesop Sep-18 | 6,750 Precommit | n.a | n.a.
2 Southbank Blvd, Southbank Carlton & United Breweries Feb-18 | 6,500 Direct | 800 (G) | 10
161 Collins St, Melbourne Treasury Wine Estates Jul-18 | 6,000 Direct | n.a | n.a.
600 St Kilda Rd, Melbourne Newcrest Mining Jul-18 | 5,405 Renewal | 355 (N) | 5
222 Exhibition St, Melbourne WeWork Aug-18 | 5,250 Direct | 520 (N) | 12
414 La Trobe St, Melbourne Fair Work Ombudsman Jul-18 | 4,304 Renewal | 460 (G) | 10
600 Glenferrie Rd, Hawthorn United Petroleum Mar-18 | 3,800 Direct | n.a | n.a.
Leasing Types: p = Pre-commitment, d = Direct, s = Sub-Lease, r = Renewal
Q3/2018
savills.com.au/research 14
Savills Research | Quarter Time – National Office
Queensland
Brisbane Key Indicators
Brisbane CBDPremium A Grade B Grade
Low High Low High Low High
Rental – Gross Face ($/sq m) 800 905 625 750 545 605
Rental – Net Face ($/sq m) 635 740 475 600 400 460
Incentive Level Gross 30 38 32 40 40 45
Rental – Net Effective ($/sq m) 365 430 250 330 170 205
Outgoings – Operating ($/sq m) 70 125 70 100 75 90
Outgoings – Statutory ($/sq m) 60 70 55 75 50 75
Outgoings – Total ($/sq m) 130 195 125 175 125 165
Typical Lease Term 7 10 3 10 3 8
Yield – Market (% Net Face Rental) 5.00 6.00 5.75 6.25 6.50 7.50
IRR (%) 6.75 7.25 6.75 7.25 7.25 7.75
Cars Permanent Reserved ($/pcm) 500 850 450 650 350 550
Cars Permanent ($/pcm) 450 650 400 550 300 500
Office Capital Values ($/sq m) 11,500 14,000 8,000 11,500 5,500 7,750
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
PCA OMR Statistics (Jun-18)
Brisbane CBD Brisbane Fringe Gold Coast Sunshine Coast AUS CBD
Total Stock 2,243,323 1,188,566 469,561 171,383 17,907,541
Total Vacancy 328,463 172,436 56,520 25,686 1,539,867
Vacancy (%) 14.6 (12.3) 14.5 (11.5) 12.0 (17.5) 15.0 (12.5) 9.2 (9.2)
Net Absorption (12m) -6,124 (13,231) -30,197 (14,623) -2,623 (5,075) 7,139 (4,654) 149,309 (170,353)
Net Absorption (%) -0.3 (0.7) -2.9 (1.6) -0.6 (1.3) 5.2 (3.9) 0.9 (1.1)
Stock Additions 18,303 24,815 3,713 22,776 269,072
Stock Withdrawals 54,705 55,891 2,800 234 364,875
Net Additions -36,402 (43,783) -31,076 (29,049) 913 (7,554) 22,542 (6,486) -91,750 (282,957)
Net Additions (%) -1.6 (2.2) -2.5 (2.8) 0.2 (1.8) 15.1 (4.9) -0.5 (1.7)
Source: PCA / Savills Research Note: 10yr Average shown in brackets
Q3/2018
savills.com.au/research 15
Savills Research | Quarter Time – National Office
Brisbane Fringe Key Indicators
Brisbane – FringeA Grade B Grade
Low High Low High
Rental – Gross Face ($/sq m) 525 625 400 495
Rental – Net Face ($/sq m) 393 493 273 368
Incentive Level Gross 35 40 35 45
Rental – Net Effective ($/sq m) 195 260 115 170
Outgoings – Operating ($/sq m) 75 110 75 100
Outgoings – Statutory ($/sq m) 30 50 30 50
Outgoings – Total ($/sq m) 105 160 105 150
Typical Lease Term 3 10 3 7
Yield – Market (% Net Face Rental) 5.75 6.75 7.00 8.25
IRR (%) 7.25 8.00 8.00 8.75
Cars Permanent Reserved ($/pcm) 250 395 180 300
Cars Permanent ($/pcm) 275 385 na na
Office Capital Values ($/sq m) 6,000 11,000 3,500 7,000
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
Gold Coast/Sunshine Coast Key Indicators
Gold Coast/Sunshine Coast Gold Coast Sunshine Coast
Low High Low High
Rental – Gross Face ($/sq m) 400 500 335 455
Rental – Net Face ($/sq m) 300 400 270 390
Incentive Level Gross 15 32 15 20
Rental – Net Effective ($/sq m) 205 285 210 310
Outgoings – Operating ($/sq m) 45 65 40 50
Outgoings – Statutory ($/sq m) 35 55 10 30
Outgoings – Total ($/sq m) 80 120 50 80
Typical Lease Term 3 8 2 5
Yield – Market (% Net Face Rental) 7.50 8.75 7.00 8.25
IRR (%) 9.00 10.00 9.50 10.00
Cars Permanent Reserved ($/pcm) 120 180 na na
Office Capital Values ($/sq m) 3,500 6,000 3,000 5,000
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
Q3/2018
savills.com.au/research 16
Savills Research | Quarter Time – National Office
Top Recent Notable Sales
Property Price ($m) | Date | NLA (sq m) Yield | Type | $/sq m
80 Ann St, Brisbane (50%) 418.00 | Jul-18 | 73,638 5.25 | i | 11,353
32 Turbot St, Brisbane 370.00 | Dec-17 | 34,396 5.66 | e | 10,757
53 Albert St, Brisbane 252.28 | Jun-18 | 19,059 5.65 | e | 13,237
2 King St (Kingsgate), Fortitude Valley 170.00 | Sep-18 | 16,341 5.69 | e | 10,403
127 Creek St, Brisbane 129.13 | May-18 | 18,303 6.59 | e | 7,055
343 Albert St / 143 Turbot St, Brisbane 110.00 | Jul-18 | 19,873 6.77 | e | 5,535
108 Wickham St, Fortitude Valley 106.23 | Dec-17 | 11,913 6.59 | i | 8,917
260 Queen St, Brisbane 95.25 | Aug-18 | 12,934 6.40 | e | 7,364
40 Tank St, Brisbane 93.00 | Aug-18 | 6,218 5.93 | e | 14,957
199 Grey St, South Brisbane 92.60 | Oct-17 | 12,025 7.11 | e | 7,701
88 Musk Ave, Kelvin Grove 84.00 | Mar-18 | 14,144 7.04 | e | 5,939
31 Duncan St, Fortitude Valley 64.00 | Nov-17 | 4,160 6.58 | i | 15,385
100 Edward St, Brisbane 64.00 | Jul-18 | 7,120 5.50 | i | 8,989
180 Queen St, Brisbane 53.95 | Oct-17 | 3,529 5.64 | i | 15,288
Yield Types: i = Initial, r = Reported, e = Equated, v = Vacant, dev = development; * Allocated Cap Rate from RCA; **Net; ***8.24% - fully leased net
Top Recent Notable Leases
Property Tenant Date | NLA (sq m) Type | Rent | Term
80 Ann St, Brisbane Suncorp Jul-18 | 39,600 Precommit | 850 (G) | 10
310 Ann St, Brisbane Allianz May-18 | 7,994 Direct | 685 (G) | 10
135 Coronation Drv, Milton Downer EDI Aug-18 | 7,099 Direct | 588 (G) | 8
310 Ann St, Brisbane State Government May-18 | 6,862 Direct | 645 (G) | 10
123 Eagle St, Brisbane Westpac Jun-18 | 6,643 Direct | 775 (G) | 10
100 Brookes St, Fortitude Valley DXC Technologies Aug-18 | 6,625 Direct | 600 (G) | 7
480 Queen St, Brisbane Department of Veterans Affairs Jul-18 | 6,414 Direct | 825 (G) | 10
179 Turbot St, Brisbane Bupa Jul-18 | 6,336 Renewal | 659 (G) | 5
200 Adelaide St, Brisbane Hub Australia Apr-18 | 3,538 Direct | 575 (G) | 10
100 Brookes St, Fortitude Valley Aurizon Apr-18 | 3,491 Direct | 600 (G) | 5
180 Ann St, Brisbane AMP Mar-18 | 3,344 Direct | 695 (G) | 10
180 Ann St, Brisbane Senex Energy Jul-18 | 3,000 Direct | 696 (G) | 7
515 St Pauls Tce, Fortitude Valley SunWater Jul-18 | 3,000 Direct | 570 (G) | 10
60 Gloucester St, Spring Hill Charlton Brown Mar-18 | 2,481 Direct | 350 (N) | 5
Leasing Types: p = Pre-commitment, d = Direct, s = Sub-Lease, r = Renewal
Q3/2018
savills.com.au/research 17
Savills Research | Quarter Time – National Office
Western Australia
Perth CBD Key Indicators
Perth CBDPremium A Grade B Grade
Low High Low High Low High
Rental – Gross Face ($/sq m) 775 900 640 815 410 635
Rental – Net Face ($/sq m) 600 725 475 650 250 475
Incentive Level Net 45 48 45 53 50 55
Rental – Net Effective ($/sq m) 320 390 245 335 120 225
Outgoings – Operating ($/sq m) 115 125 95 120 95 110
Outgoings – Statutory ($/sq m) 50 60 50 60 50 60
Outgoings – Total ($/sq m) 165 185 145 180 145 170
Typical Lease Term 5 10 5 7 3 5
Yield – Market (% Net Face Rental) 5.75 7.00 6.50 7.50 7.50 8.75
IRR (%) 6.75 7.50 7.00 8.00 7.50 8.50
Cars Permanent Reserved ($/pcm) 675 750 625 725 475 625
Cars Permanent ($/pcm) 675 750 625 725 475 625
Office Capital Values ($/sq m) 8,500 12,500 7,000 9,000 4,750 6,500
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
PCA OMR Statistics (Jun-18)
Perth CBD West Perth AUS CBD
Total Stock 1,769,065 423,920 17,907,541
Total Vacancy 342,346 67,149 1,539,867
Vacancy (%) 19.4 (12.1) 15.8 (9.2) 9.2 (9.2)
Net Absorption (12m) 30,759 (14,196) -3,559 (-1,459) 149,309 (170,353)
Net Absorption (%) 2.2 (1.1) -1.0 (-0.4) 0.9 (1.1)
Stock Additions 1,408 4,803 269,072
Stock Withdrawals 1,300 4,944 364,875
Net Additions 108 (48,056) -141 (5,256) -91,750 (282,957)
Net Additions (%) 0.0 (3.2) 0.0 (1.3) -0.5 (1.7)
Source: PCA / Savills Research Note: 10yr Average shown in brackets
Q3/2018
savills.com.au/research 18
Savills Research | Quarter Time – National Office
West Perth Key Indicators
West PerthA Grade B Grade
Low High Low High
Rental – Gross Face ($/sq m) 450 550 365 415
Rental – Net Face ($/sq m) 275 375 225 275
Incentive Level Net 40 50 40 50
Rental – Net Effective ($/sq m) 150 205 125 150
Outgoings – Operating ($/sq m) 80 90 50 55
Outgoings – Statutory ($/sq m) 75 100 75 100
Outgoings – Total ($/sq m) 155 190 125 155
Typical Lease Term 3 5 3 5
Yield – Market (% Net Face Rental) 7.00 8.00 8.25 9.25
IRR (%) 7.75 8.25 7.75 9.25
Cars Permanent Reserved ($/pcm) 325 350 300 325
Cars Permanent ($/pcm) 325 350 300 325
Office Capital Values ($/sq m) 2,950 5,300 2,400 3,300
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
Q3/2018
savills.com.au/research 19
Savills Research | Quarter Time – National Office
Top Recent Notable Sales
Property Price ($m) | Date | NLA (sq m) Yield | Type | $/sq m
141 St Georges Tce, Perth 216.25 | Oct-17 | 32,635 7.27 | e | 6,626
202 Pier St, Perth 125.25 | Jun-18 | 15,602 7.04 | e | 8,028
836 Wellington St, West Perth 91.33 | Jun-18 | 11,973 6.19 | e | 7,628
45 St Georges Tce, Perth 57.00 | Nov-17 | 10,010 7.63 | e | 5,694
55 St Georges Tce, Perth 43.50 | Feb-18 | 8,329 n.a | n.a | 5,306
6-8 Bennett St, Perth 43.50 | Jan-18 | 10,211 8.15 | e | 4,260
1 Havelock St, West Perth 33.00 | Sep-18 | 5,121 7.00 | e | 6,444
441 Murray St, Perth 22.00 | Apr-18 | 5,849 7.44 | e | 3,761
182 St Georges Tce, Perth 21.10 | Feb-18 | 5,414 8.02 | e | 3,897
1 Essex St, Fremantle 12.00 | Jul-18 | 3,872 n.a | n.a | 3,099
105 St Georges Tce, Perth 11.00 | Nov-17 | 3,826 8.36 | e | 2,875
18-22 Bowman St, South Perth 9.90 | Nov-17 | 1,387 n.a | n.a | 7,138
87 Colin St, West Perth 8.50 | Jun-18 | 2,746 n.a | n.a | 3,095
125-129 Murray St, Perth 8.10 | May-18 | 6,325 n.a | n.a | 1,281
1874 Pinjarra Rd, Pinjarra 6.80 | Jan-18 | 1,679 10.30 | r | 4,050
Yield Types: i = Initial, r = Reported, e = Equated, v = Vacant, dev = development; * part of a portfolio sale
Top Recent Notable Leases
Property Tenant Date | NLA (sq m) Type | Rent | Term
240 St Georges Tce, Perth Wood Group Aug-18 | 9,198 Direct | n.a | n.a.
226 Adelaide Tce, Perth Dept of Human Services Aug-18 | 4,542 Direct | n.a | 3
240 St Georges Tce, Perth CBH Group Apr-18 | 3,790 Direct | n.a | n.a.
77 St Georges Tce, Perth Minter Ellison Jun-18 | 3,440 Renewal | 565 | 5
556 Wellington St, Perth P&N Bank May-18 | 3,249 Direct | n.a | 10
240 St Georges Tce, Perth Iluka Resources May-18 | 3,238 Direct | n.a | n.a.
1100 Hay St, West Perth MSP Engineering Sep-18 | 2,568 Renewal | n.a | n.a.
556 Wellington St, Perth BG & E May-18 | 2,444 Direct | n.a | 10
15-17 William St, Perth Virtual Gaming Worlds Feb-18 | 2,129 Direct | n.a | 7
256 Adelaide Tce, Perth Minnovo Feb-18 | 2,033 Direct | 300 (Net | 5
34-50 Stirling St, Perth Fortix Mar-18 | 1,983 Direct | 275 (Net) | 5
2 Kings Park Rd, West Perth Western Areas Mar-18 | 1,440 Renewal | n.a | 4
18 Mount St, Perth WorleyParsons May-18 | 1,394 Direct | n.a | n.a.
141 St Georges Tce, Perth Hartleys Aug-18 | 1,379 Renewal | n.a | 8
197 St Georges Tce, Perth Liberty Apr-18 | 1,200 Direct | n.a | n.a.
Leasing Types: p = Pre-commitment, d = Direct, s = Sub-Lease, r = Renewal
Q3/2018
savills.com.au/research 20
Savills Research | Quarter Time – National Office
South Australia
Adelaide CBD Key Indicators
Adelaide CBDPremium A Grade B Grade
Low High Low High Low High
Rental – Gross Face ($/sq m) 520 590 445 530 355 435
Rental – Net Face ($/sq m) 405 475 330 410 265 335
Incentive Level (Gross) 25 35 28 38 30 40
Rental – Net Effective ($/sq m) 250 300 185 235 140 185
Outgoings – Operating ($/sq m) 65 75 55 70 40 55
Outgoings – Statutory ($/sq m) 40 50 40 45 40 45
Outgoings – Total ($/sq m) 105 125 95 115 80 100
Typical Lease Term 7 10 5 10 3 7
Yield – Market (% Net Face Rental) 6.00 7.25 6.75 7.75 8.00 9.25
IRR (%) 7.25 7.75 7.75 8.75 8.50 9.75
Cars Permanent Reserved ($/pcm) 380 450 350 410 300 350
Cars Permanent ($/pcm) 370 450 350 400 300 350
Office Capital Values ($/sq m) 5,250 7,750 4,125 5,850 2,500 4,000
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
PCA OMR Statistics (Jun-18)
Adelaide CBD Adelaide Fringe AUS CBD
Total Stock 1,424,453 217,212 17,907,541
Total Vacancy 210,004 23,934 1,539,867
Vacancy (%) 14.7 (11.1) 11.0 (7.8) 9.2 (9.2)
Net Absorption (12m) 19,811 (5,370) -783 (184) 149,309 (170,353)
Net Absorption (%) 1.7 (0.5) -0.4 (0.1) 0.9 (1.1)
Stock Additions 3,505 2,212 269,072
Stock Withdrawals 3,485 850 364,875
Net Additions 20 (21,627) 1,362 (2,108) -91,750 (282,957)
Net Additions (%) 0.0 (1.7) 0.6 (1.0) -0.5 (1.7)
Source: PCA / Savills Research Note: 10yr Average shown in brackets
Q3/2018
savills.com.au/research 21
Savills Research | Quarter Time – National Office
Adelaide Fringe Key Indicators
Adelaide FringeA Grade B Grade
Low High Low High
Rental – Gross Face ($/sq m) 400 425 335 380
Rental – Net Face ($/sq m) 330 355 270 300
Incentive Level Net 20 30 20 35
Rental – Net Effective ($/sq m) 250 265 195 220
Outgoings – Operating ($/sq m) 40 50 25 45
Outgoings – Statutory ($/sq m) 20 30 25 35
Outgoings – Total ($/sq m) 60 80 50 80
Typical Lease Term 5 7 3 5
Yield – Market (% Net Face Rental) 7.25 7.75 7.75 8.75
IRR (%) 8.00 9.25 9.25 10.50
Cars Permanent Reserved ($/pcm) 90 120 80 100
Cars Permanent ($/pcm) 90 120 80 100
Office Capital Values ($/sq m) 4,125 4,725 3,000 3,750
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
Q3/2018
savills.com.au/research 22
Savills Research | Quarter Time – National Office
Top Recent Notable Sales
Property Price ($m) | Date | NLA (sq m) Yield | Type | $/sq m
11 Waymouth St, Adelaide 202.50 | Dec-17 | 30,997 6.57 | e | 6,533
80 Grenfell St, Adelaide 184.60 | May-18 | 22,691 6.25 | e | 8,135
12-26 Franklin St, Adelaide (50.0%) 135.00 | Aug-18 | 37,316 5.79 | r | 7,236
60 Flinders St, Adelaide 101.35 | Aug-18 | 15,731 7.40 | i | 6,443
196 O G Road, Felixstow 35.00 | Mar-18 | 6,288 7.31 | e | 5,566
60 Light Sq, Adelaide 35.00 | May-18 | 6,644 6.77 | e | 5,268
27-39 Currie St, Adelaide 26.00 | Jun-18 | 14,062 3.85 | r | 1,849
25 Conyngham St, Glenside 16.00 | Jul-18 | 3,200 n.a | n.a | 5,000
18 Chapel St, Norwood 15.00 | Feb-18 | 383 n.a | VP | 39,164
51 Pirie St, Adelaide 14.50 | Jul-18 | 4,252 n.a | n.a | 3,410
17-19 Fullarton Rd, Kent Town 11.00 | Jul-18 | 2,563 n.a | n.a | 4,292
32-38 Gawler St, Salisbury 9.50 | Oct-17 | 2,200 6.95 | r | 4,318
9-11 Dequetteville Tce, Kent Town 6.00 | Oct-17 | 2,207 n.a | VP | 2,719
98A-100 Woodville Rd, Woodville 5.10 | Jun-18 | 9,600 (site) n.a | dev | n.a.
Yield Types: i = Initial, r = Reported, e = Equated, v = Vacant, dev = development; * part of a portfolio sale
Top Recent Notable Leases
Property Tenant Date | NLA (sq m) Type | Rent | Term
141 King William St, Adelaide BHP Apr-18 | 10,056 Precommit | n.a | 10
1 King William St, Adelaide Suncorp May-18 | 4,660 Direct | n.a | 7
115 Sherriff St, Underdale Downer EDI Works Apr-18 | 3,103 Renewal | n.a | 5
19-21 Gouger St, Adelaide Thomson Geer Lawyers Nov-17 | 3,000 Renewal | n.a | 10
63 Pirie St, Adelaide Cowell Clarke Jun-18 | 2,260 Direct | n.a | n.a.
25 Grenfell St, Adelaide Heathgate Resources Mar-18 | 1,700 Renewal | n.a | n.a.
118 Franklin St, Adelaide Datacom Mar-18 | 1,531 Direct | n.a | 5
11-29 Waymouth St, Adelaide Undisclosed Sep-18 | 1,452 Direct | n.a | n.a.
162-163 Greenhill Rd, Parkside Metricon Sep-18 | 1,400 Direct | n.a | n.a.
1 James Schofield Dr, Adelaide Airport Oz Minerals Oct-17 | 1,200 Direct | n.a | 10
91 King William St, Adelaide Attorney-General's Department of SA Jan-18 | 1,118 Direct | 550 (G) | 10
80 Flinders St, Adelaide Inabox Group Jan-18 | 1,072 Direct | 532 (G) | 7
44 Pirie St, Adelaide Game Plus Dec-17 | 1,067 Direct | 295 (G) | 8
170 Frome St, Adelaide AllScripts Mar-18 | 1,000 Direct | n.a | 7
Leasing Types: p = Pre-commitment, d = Direct, s = Sub-Lease, r = Renewal
Q3/2018
savills.com.au/research 23
Savills Research | Quarter Time – National Office
Australian Capital Territory
Canberra Civic Key Indicators
Canberra CivicA Grade B Grade
Low High Low High
Rental – Gross Face ($/sq m) 440 500 400 435
Rental – Net Face ($/sq m) 340 400 300 335
Incentive Level Net 10 25 18 30
Rental – Net Effective ($/sq m) 265 315 205 230
Outgoings – Operating ($/sq m) 55 70 60 70
Outgoings – Statutory ($/sq m) 30 40 30 40
Outgoings – Total ($/sq m) 85 110 90 110
Typical Lease Term 5 15 3 10
Yield – Market (% Net Face Rental) 5.50 7.00 7.25 10.00
IRR (%) 7.25 8.50 9.25 10.75
Cars Permanent Reserved ($/pcm) 320 385 320 385
Office Capital Values ($/sq m) 6,000 8,500 4,000 5,500
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
PCA OMR Statistics (Jun-18)
Canberra AUS CBD
Total Stock 2,321,402 17,907,541
Total Vacancy 289,221 1,539,867
Vacancy (%) 12.5 (12.1) 9.2 (9.2)
Net Absorption (12m) -29,107 (21,124) 149,309 (170,353)
Net Absorption (%) -1.4 (1.1) 0.9 (1.1)
Stock Additions 66,474 269,072
Stock Withdrawals 77,636 364,875
Net Additions -11,162 (38,204) -91,750 (282,957)
Net Additions (%) -0.5 (1.8) -0.5 (1.7)
Source: PCA / Savills Research Note: 10yr Average shown in brackets
Q3/2018
savills.com.au/research 24
Savills Research | Quarter Time – National Office
Canberra Non-Civic Key Indicators
Canberra Non-CivicA Grade B Grade
Low High Low High
Rental – Gross Face ($/sq m) 440 500 400 435
Rental – Net Face ($/sq m) 340 400 300 335
Incentive Level Net 10 25 18 30
Rental – Net Effective ($/sq m) 265 315 205 230
Outgoings – Operating ($/sq m) 55 70 60 70
Outgoings – Statutory ($/sq m) 30 40 30 40
Outgoings – Total ($/sq m) 85 110 90 110
Typical Lease Term 5 15 3 10
Yield – Market (% Net Face Rental) 5.50 7.00 7.25 10.00
IRR (%) 7.25 8.50 9.25 10.75
Cars Permanent Reserved ($/pcm) 320 385 320 385
Office Capital Values ($/sq m) 6,000 8,500 4,000 5,500
Source: Savills Research NB: All rents equivalent to whole floor mid-rise
Top Recent Notable Sales
Property Price | Date | NLA Yield | Type | $/sq m
14 Childers St, Canberra 92.15 | Dec-17 | 15,150 6.90 | e | 6,083
44 Sydney Ave, Forrest 58.60 | Nov-17 | 9,948 6.38 | e | 5,891
14 Mort St, Canberra 55.00 | Jun-18 | 9,384 6.31 | i | 5,861
6 National Cct, Barton 37.50 | Feb-18 | 6,171 6.87 | e | 6,077
40 Cameron Ave, Belconnen 23.90 | Jul-18 | 14,900 n.a | n.a | 1,604
Queen Victoria Ter, Parkes 15.45 | Jan-18 | 4,958 n.a | n.a | 3,116
Yield Types: i = Initial, r = Reported, e = Equated, v = Vacant, dev = development; * Includes $10m in unpaid incentives
Q3/2018
savills.com.au/research 25
Savills Research | Quarter Time – National Office
Savills inSite
Property Insights...
Anywhere, Anytime
The Website
Designed and coded by research for application across
each stage of the property process, the system covers
the full spectrum; allowing users to access detailed
sales, leasing and development data or download full
Excel data files and hundreds of modifiable PowerPoint
slides across any device.
All data sourced in this document, and significantly more,
is accessible to registered clients via Savills dedicated
research portal:
savills-insite.com.au
Sales Data
Leasing Data
Economic Metrics
Developments
PowerPoint Slides
Excel Data Files
Reports Database
Geo-Mapping
Charting Functionality
News Summaries
of office sales recorded
$187 billion
of industrial sales recorded
$79 billion
of retail sales recorded
$98 billion
of office leases recorded
12,549
of industrial leases recorded
9,699
economic data series901
categorised news summaries
4,318
Q3/2018
savills.com.au/research 26
Savills Research | Quarter Time – National Office
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