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



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



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


CanberraCivic


-5%

0%

5%

10%

15%

20%

SydneyCBD

MelbourneCBD

BrisbaneCBD


CanberraCivic


-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

SydneyCBD

MelbourneCBD

BrisbaneCBD


CanberraCivic


-5%

0%

5%

10%

15%

20%

SydneyCBD

MelbourneCBD

BrisbaneCBD


CanberraCivic


-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

SydneyCBD

MelbourneCBD

BrisbaneCBD


CanberraCivic


-5%

0%

5%

10%

15%

20%

SydneyCBD

MelbourneCBD

BrisbaneCBD


CanberraCivic


-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

SydneyCBD

MelbourneCBD

BrisbaneCBD


CanberraCivic


Q3/2018



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


(200,000)

(100,000)

-

100,000

200,000

300,000

400,000


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


(200,000)

(100,000)

-

100,000

200,000

300,000

400,000


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


(200,000)

(100,000)

-

100,000

200,000

300,000

400,000


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



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

80 A

nn S

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isban

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0.0%

) - Ju

l-18

- $11

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/sq

m

60 S

tatio

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, 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

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2,87

7/sq

m

2 Ki

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rtitu

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alle

y, Q

LD- S

ep-1

8 - $

10,4

03/s

q m

60 C

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Mel

bour

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Sep-

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$11,

580/

sq m

12-2

6 Fr

ankl

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elai

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0.0%

) - A

ug-1

8 - $

7,23

6/sq

m

383

La T

robe

St,

Mel

bour

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VIC

- Sep

-18

- $11

,961

/sq

m

343

Albe

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43 T

urbo

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Brisb

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QLD

- Ju

l-18

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60 F

linde

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A -

Aug-

18 -

$6,4

43/s

q m

260

Que

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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

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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

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SW -

Aug-

18 -

$24,

498/

sq m

105

York

St,

Sout

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9,59

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60 Q

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St,

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- $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

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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

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St,

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QLD

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- $4

1.00

m

2 M

illen

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Blv

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LD -

Sep-

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$28.

20m

383

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St,

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8 - $

122.

00m

60 C

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Mel

bour

ne, V

IC -

Sep-

18 -

$160

.00m

80 M

ount

St,

Nort

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dney

,NS

W -

Sep-

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$71.

00m

80 A

nn S

t, Br

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LD(5

0.0%

) - Ju

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- $41

8.00

m

60 S

tatio

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, 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

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elbo

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,VI

C - S

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49.0

0m

217

Geor

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LD -

Sep-

18 -

$30.

36m

107

Ove

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Rd,

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Jul-1

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Batm

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bour

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IC -

Sep-

18 -…

277

Will

iam

St,

Mel

bour

ne, V

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Jul-1

8 - $

93.8

8m

$0bn

$2bn

$4bn

$6bn

$8bn

$10bn

$12bn

$14bn

$16bn

$18bn


0%

20%

40%

60%

80%

100%


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

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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

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alle

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LD- S

ep-1

8 - $

10,4

03/s

q m

60 C

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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

m

343

Albe

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t / 1

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QLD

- Ju

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60 F

linde

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Aug-

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$6,4

43/s

q m

260

Que

en S

t, Br

isban

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LD -

Aug-

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$7,3

64/s

q m

277

Will

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St,

Mel

bour

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8 - $

7,77

2/sq

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40 T

ank

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LD -

Aug-

18 -

$14,

957/

sq m

60 P

itt S

t, Sy

dney

, NSW

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g-18

- $1

9,88

6/sq

m

80 M

ount

St,

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dney

,NS

W -

Sep-

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$11,

444/

sq m

52 C

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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/

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105

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St,

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C - S

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m

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p-18

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235-

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819/

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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

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t, Sy

dney

, NSW

-Au

g-18

- $2

40.0

0m

1 Su

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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

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C - S

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14.0

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60 Q

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QLD

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p-18

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illen

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Sep-

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$28.

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bour

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122.

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Sep-

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$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

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,VI

C - S

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8 - $

49.0

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217

Geor

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LD -

Sep-

18 -

$30.

36m

107

Ove

rton

Rd,

Will

iam

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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


0%

20%

40%

60%

80%

100%


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

m

343

Albe

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43 T

urbo

t St,

Brisb

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QLD

- Ju

l-18

-…

60 F

linde

rs S

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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

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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

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C - S

ep-1

8 - $

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5m

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ueen

St,

Brisb

ane,

QLD

-Se

p-18

- $4

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illen

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d, C

arin

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Sep-

18 -

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bour

ne, V

IC- S

ep-1

8 - $

122.

00m

60 C

ollin

s St,

Mel

bour

ne, V

IC -

Sep-

18 -

$160

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ount

St,

Nort

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dney

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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

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ng S

t, Fo

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alle

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LD -

Sep-

18 -

$170

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105

York

St,

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h M

elbo

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C - S

ep-1

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217

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Sep-

18 -

$30.

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107

Ove

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Will

iam

sLa

ndin

g, V

IC -

Jul-1

8 - $

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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



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



IT & Comm 88,816sqm - 9.2%

Mining & Util. 118,108sqm - 12.3%


Govt. 210,704sqm - 21.9%

Fin & Ins 258,979sqm - 26.9%

Direct - 583,534sqm -59.2%





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


200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000



IT & Comm 88,816sqm - 9.2%

Mining & Util. 118,108sqm - 12.3%


Govt. 210,704sqm - 21.9%

Fin & Ins 258,979sqm - 26.9%

Direct - 583,534sqm -59.2%





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


200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000



IT & Comm 88,816sqm - 9.2%

Mining & Util. 118,108sqm - 12.3%


Govt. 210,704sqm - 21.9%

Fin & Ins 258,979sqm - 26.9%

Direct - 583,534sqm -59.2%





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


Q3/2018



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



North Shore Key Indicators

North Shore

North SydneyA Grade

North SydneyB Grade

Macquarie ParkA Grade


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






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



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


Q3/2018



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



Victoria

Melbourne CBD Key Indicators

Melbourne CBD (City Core)Premium A Grade B Grade


Rental – Gross Face ($/sq m) 750 1,020 685 805 550 625


Incentive Level (Net) 20 27 24 28 22 26







IRR (%) 6.50 6.85 6.50 7.00 6.75 7.25






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)


Q3/2018



Melbourne – St Kilda Rd Key Indicators

Melbourne – St Kilda RdA Grade B Grade

Low High Low High



Incentive Level (Net) 16 21 15 22







IRR (%) 6.75 7.00 7.00 7.25




Melbourne – Suburban Key Indicators

Melbourne – SuburbanA Grade B Grade

Low High Low High



Incentive Level (Net) 15 19 15 20







IRR (%) 7.00 7.50 7.00 7.50




Q3/2018





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



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.


Q3/2018



Queensland

Brisbane Key Indicators

Brisbane CBDPremium A Grade B Grade


Rental – Gross Face ($/sq m) 800 905 625 750 545 605


Incentive Level Gross 30 38 32 40 40 45







IRR (%) 6.75 7.25 6.75 7.25 7.25 7.75






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)


Q3/2018



Brisbane Fringe Key Indicators

Brisbane – FringeA Grade B Grade

Low High Low High



Incentive Level Gross 35 40 35 45







IRR (%) 7.25 8.00 8.00 8.75


Cars Permanent ($/pcm) 275 385 na na



Gold Coast/Sunshine Coast Key Indicators

Gold Coast/Sunshine Coast Gold Coast Sunshine Coast

Low High Low High



Incentive Level Gross 15 32 15 20







IRR (%) 9.00 10.00 9.50 10.00

Cars Permanent Reserved ($/pcm) 120 180 na na



Q3/2018





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



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


Q3/2018



Western Australia

Perth CBD Key Indicators

Perth CBDPremium A Grade B Grade




Incentive Level Net 45 48 45 53 50 55







IRR (%) 6.75 7.50 7.00 8.00 7.50 8.50






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)


Q3/2018



West Perth Key Indicators

West PerthA Grade B Grade

Low High Low High










IRR (%) 7.75 8.25 7.75 9.25





Q3/2018





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



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.


Q3/2018



South Australia

Adelaide CBD Key Indicators

Adelaide CBDPremium A Grade B Grade




Incentive Level (Gross) 25 35 28 38 30 40







IRR (%) 7.25 7.75 7.75 8.75 8.50 9.75






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)


Q3/2018



Adelaide Fringe Key Indicators

Adelaide FringeA Grade B Grade

Low High Low High










IRR (%) 8.00 9.25 9.25 10.50





Q3/2018





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



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


Q3/2018



Australian Capital Territory

Canberra Civic Key Indicators

Canberra CivicA Grade B Grade

Low High Low High










IRR (%) 7.25 8.50 9.25 10.75





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)


Q3/2018



Canberra Non-Civic Key Indicators

Canberra Non-CivicA Grade B Grade

Low High Low High










IRR (%) 7.25 8.50 9.25 10.75





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 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:

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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 Australian Capital Territory

Savills Queensland

Savills South Australia

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Research Shrabastee Mallik +61 (0) 2 8215 8880 [email protected]

Valuations Phil Harding +61 (0) 2 6221 8293 [email protected]

Capital Transactions Andrew Stewart +61 (0) 2 6221 8295 [email protected]

Leasing Pip Doogan +61 (0) 2 6221 8291 [email protected]


Sunshine Coast Scott Gardiner +61 (0) 7 5313 7514 [email protected]

Valuations Brett Schultz +61 (0) 7 3002 8855 [email protected]

Gold Coast Kevin Carmody +61 (0) 7 5509 1700 [email protected]

Capital Transactions Anthony Ott +61 (0) 7 3002 8904 [email protected]

Asset Management Shannon Ormond +61 (0) 7 3002 8831 [email protected]

Office Leasing John McDonald +61 (0) 7 3002 8847 [email protected]

Project Management Ken Ng +61 (0) 7 3018 6705 [email protected]

Research Katy Dean +61 (0) 2 8215 6011 [email protected]

Office Leasing Adam Hartley +61 (0) 8 8237 5043 [email protected]

Valuations Heath Dowling +61 (0) 8 8237 5039 [email protected]

Asset Management Jeffrey Klaebe +61 (0) 8 8237 5018 [email protected]

Capital Transactions Peter Isaksson +61 (0) 8 8237 5020 [email protected]

Project Management Steve Christodoulou +61 (0) 8 8237 5004 [email protected]

City & Metropolitan Sales Steve Bobridge +61 (0) 8 8237 5015 [email protected]

Occupier Services Mark Smith +61 (0) 8 488 4131 [email protected]


Asset Management Sarah Hendry +61 (0) 2 8686 8094 [email protected]

Valuations Ben Koops +61 (0) 3 8686 8071 [email protected]

Project Management David Hayden +61 (0) 3 9445 6806 [email protected]

Capital Transactions James Girvan +61 (0) 3 8686 8025 [email protected]

Office Leasing Mark Rasmussen +61 (0) 3 8686 8010 [email protected]

CBD & Metropolitan Sales Clinton Baxter +61 (0) 3 8686 8021 [email protected]

Occupier Services Marcus Tanti +61 (0) 3 8686 8008 [email protected]


Metro & Regional Sales Robert Lowe +61 (0) 2 8215 8841 [email protected]

Occupier Services Javan Matheson +61 (0) 2 8215 8825 [email protected]

Office Leasing Rob Dickins +61 (0) 2 8215 8833 [email protected]

Valuations Andrew Pannifex +61 (0) 2 8215 6006 [email protected]

Asset Management Howard Chapman +61 (0) 2 8686 8870 [email protected]

Capital Transactions Ian Hetherington +61 (0) 2 8215 8925 [email protected]

Project Management Gavin Boswarva +61 (0) 2 8215 8935 [email protected]


Office Leasing Shelley Ritter +61 (0) 8 9488 4187 [email protected]

Valuations Mark Foster-Key +61 (0) 8 9488 4145 [email protected]

Asset Management Jason Ridge +61 (0) 8 9488 4118 [email protected]

Capital Transactions Graham Postma +61 (0) 8 9488 4153 [email protected]

Project Management Graham Nash +61 (0) 8 6271 0306 [email protected]

City & Metropolitan Sales Chas Moore +61 (0) 8 9488 4155 [email protected]

Occupier Services Mark Smith +61 (0) 8 488 4131 [email protected]

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