“This said, as these events become “the new normal” the negative effects are decreasing. Occupiers are moving towards making strategic longer term decisions, which will continue to see “the office” as the dominant and critical workplace" continued Mr Postma.

“All markets are seeing increased activity in the “spec fit out” space particularly in the small to medium business sectors. Likewise, the “flight to quality” continues across all regions, driving owners to constantly reassess the relevance of their offering and upgrade to compete where appropriate.

“We anticipate post lockdowns business sentiment will continue to improve and many employees suffering from “WFH fatigue” will actively look and embrace the opportunity to return to the CBDs around the country” he said.

NSW

According to Tom Mott, State Director - Office Leasing - NSW at Savills Australia, the Sydney CBD began to see a resurgence in activity and broad leasing demand.

“Pre this current lockdown, the city streets were as busy as they had been since February 2020. The SME cohort really drove this as they looked to bring their staff back together to drive culture and productivity.

“Many tenants sought the opportunity to upgrade their office space given the vacancy rate shifted well beyond the landlord/tenant equilibrium point. This resulted in a flurry of leasing activity.

“The 5,000sqm plus market was less active as those groups were still grappling with head count as a result of touted hybrid working models.

“We see our clients continue to invest in their buildings knowing that once again there will be a surge in leasing demand post the current Sydney lockdown”.

QLD

According to David Howson, State Director- QLD at Savills Australia, The Brisbane CBD has seen notable activity within the sub 500sqm market with a significant increase in enquiry and general activity in this space.

“A Grade continues to be the most active sector with continued take-up of quality fitted tenancies.

Challenges still remain in the larger end of the market with WFH remaining a hot topic, we are expecting some strong announcements within this part of the market over the coming months and the 2032 Olympics should add a good spring to the step of the market – subject to vaccination success and post the current lockdown pandemic”.

VIC

Mark Rasmussen, State Director - VIC Office Leasing at Savills Australia said despite lockdowns and the current 25 % occupancy cap for office users, inquiry levels remain steady.

“Various market sectors are responding to the changed conditions to suit their business. A significant proportion of the market are catering for work from home models however others including IT and some professional services are expanding their office requirements.

Demand is strong for fitted tenancies and well-presented accommodation. Tenants are taking advantage of the current conditions and upgrading to higher office grades to attract the best and brightest staff. We expect inquiry levels to improve to cater for pent up demand after lockdown”.

SA

According to Andrew Ingleton, Director Office Leasing – SA at Savills Australia, Adelaide’s speed of recovery from the pandemic was evident by its keen Business confidence in the early part of 2021.

“Tenant enquiry was strong, particularly in the large tenant market, which was buoyed by the Defence sector. Data security is another strong business segment at present.

“Adelaide is seen as a Covid safe haven and there are a number of National corporates considering an expansion of their footprint on SA. In contrast, the sub 500 sqm market is quiet as SME’s take a more cautious approach”.

WA

David Evans, Director – Office Leasing – WA at Savills Australia said over the last 6 months The Perth CBD has continued it transactional spirit buoyed by strong business confidence despite a minor setback with the short lockdown during the recent school holidays.

“Some owners have started to increase face rents in certain Prime stock where vacancy is tightening however generally effective rents are offset with incentives. Competition between owners seeking to attract new tenants “v” owners seeking to retain existing tenants provides occupiers favourable terms whether relocating to a higher grade of accommodation or upgrading their existing space.

“Brokerage deals sub 500sqm has again remained steady and is lease expiry lead. Active small to medium size occupiers are concentrating on new speculative fit outs, available in all grades, from 100sqm to full floors of over 1,000sqm.

“Larger active occupiers continue to prefer bespoke fit outs with modern, flexible workplace environments and superior amenity.

“Buildings with large existing or pending vacancies are undertaking refurbishment or upgrades to attract suitable occupiers. Developers are actively seeking pre-commitments to kick off one or two high profile sites” he said.