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New supply of 113,679 sq m is estimated to have been added in 2014, which is a decline of 42% from the 196,965 sq m recorded in 2013. The largest project to complete over H2 2014 was 150 Collins Street totalling 20,000 sq m. Westpac is the major tenant of this building (65%), with space currently still available. Looking ahead, further supply is scheduled to complete over 2015.
Approximately 130,000 sq m is estimated to be added and over 60% of this space has been pre-committed. The most significant project to complete will be 567 Collins Street, adding almost 54,000 sq m of space and is over 70% pre-committed by tenants including Leighton Contractors and Jemena. Following the strong supply in 2015, the construction cycle is expected to slow, with only 48,700 sq m estimated to be completed in 2016, 64% below the 10-year average.
Source : DTZ
