Sydney and Melbourne emerged as the top two markets in the world for office rental growth in the third quarter of 2017, according to JLL’s Global Office Index.
Prime rental performance in Sydney grew at an annual pace of 30.1%, while the market in Melbourne listed a 17.3% year-over-year increase. The two cities outranked San Francisco and New Jersey in the U.S.
Venture X agrees with other experts that a coworking space franchise opportunity serves as an option if you have been thinking of ways to make the most of rental growth in Sydney or Melbourne. Demand in these capital cities largely contributed to the stellar growth performance, as shared office spaces provided tenants with a novel way to downsize on costs yet improve the working environment for their employees.
Tenants have turned their attention to areas outside the central business districts as well. For instance, Colliers International and Cadigal Leasing’s occupancy of 6,000 square metres of space in Chatswood, Sydney, have helped lower the office vacancy rates.
Tim O’Connor, JLL Australia’s head of office leasing, said that Sydney and Melbourne have remained in the top 10 global list for the past five and two years, respectively. While Sydney has been on top for quite some time, Melbourne’s progress was also impressive.
The city has moved up from its fifth spot in 2015 to the second best office rental market in the world, according to O’Connor. JLL based its rankings on prime rental growth in 125 markets around the world. The third-quarter office index showed that global rental performance rose 2.7% year over year.
The office rental market in Australia, particularly in Sydney and Melbourne, seem to be a good choice for business opportunities based on the JLL Index. Do you think shared working spaces are a viable way to take advantage of the current trend?