An interesting story is brewing with the Property Council of Australia’s latest Office Market Report. The take up of office space around Australia is a key indicator of white collar employment and Australia’s two biggest markets, being Melbourne and Sydney, are showing net demand has fallen in the past six months.

But before rushing to conclusions and fearing the worst, for employment rates, the economy and our nation’s future, it turns out that the data shows a different story. Statistics reveal that the current vacancy rate in both Melbourne and Sydney CBD markets is below 4% and that tenants simply can’t find the space they require. As such, more and more businesses are making their way into suburban markets to compensate. And where there are challenges with contiguous space within the CBD, businesses seeking to scale their floor space are finding significant limitations there. The opposite is true of course, however, in solutions located within surrounding suburbs and the evidence is clear.

Nick Lenaghan of the Australian Financial Review reports that office vacancies in sub-markets such as East Melbourne are among the tightest in the country. Mr Lenaghan writes that, “It’s even stronger in Sydney “where Parramatta, Chatswood, Macquarie “and Crows Nest markets all feature rates “well below the national average”. According to the figures provided by the Property Council, more than 680,000 square meters of new office space will come onto CBD markets over the coming year, with 80% of that in Sydney and Melbourne.

Strong indicators of supply increasing to meet demand, poised for economic growth.