Brisbane office vacancies at decade low as workers ditch WFH

Just when you thought the post-pandemic era was all about working from home, Brisbane has up-ended the prevailing logic.

Brisbane’s CBD office vacancy rate has hit its lowest level in over a decade, as workers return to the office in droves.

New data from the Property Council’s Office Market report reveals the vacancy rate hit 9.5 per cent in July, down from 11.7 per cent in January and is the tightest in Australia.

Property Council of Australia Queensland executive director Jess Caire said there was strong interest in Brisbane.

“The fact that 2024 Brisbane office vacancy would be at its lowest level in over 10 years would have been unthinkable in midst of the pandemic when many businesses were questioning whether they even needed a workspace,” Ms Caire said.

“Brisbane and South East Queensland have the lowest office vacancy rates in the country, proving what all Queenslanders know – we are the place to be for any business with ambitions to grow.”

Ms Caire said the figures were a reflection that workers wanted to be in the CBD.

“Workers want to be in these office spaces,” she said.

“We’ve come a long way from the pandemic shutdowns and people working from home.”

Experts have warned the level of construction in the CBD is not keeping up with demand, which may create problems in the future.

Brisbane workers have returned to the office in droves.

Ms Caire said there was a shortage across all property sectors – due to demand combined with policy and planning settings not agile or responsive enough to keep pace.

“While a lack of office space may not seem as dire as the housing shortage, we simply cannot sustainably respond to population growth without places for people to work,” she said.

Real Estate Institute Queensland chief executive Antonia Mercorella said the vacancy rate was so low due to the cost of construction in Queensland.

“Established commercial buildings are in hot demand, because we’re not constructing many new ones, and any new ones that are being constructed are being gobbled up,” she said.

“It is quite difficult at the moment to find good quality commercial office space, particularly if you’re wanting that A-grade office space.”

Ms Mercorella said Brisbane employers also realised they would need to make an effort to keep people in the office.

“We have seen more employers and more commercial property owners adding good quality end-of-trip facilities, adding lots of worker benefits, putting on lunches, good quality coffee, holding social events,” she said.

The data showed Brisbane fringe markets also decreased from 13.9 per cent in the past six months to 12 per cent.

Knight Frank Partner Jennelle Wilson said the numbers were the fruition of sustained prime office take-up in a climate of no new supply.