There’s surging numbers of off-the-plan office developments being marketed in Melbourne to meet rising demand for commercial office space.
According to CBRE figures strata office values in Melbourne have jumped10-15 per cent in the last year and they are achieving returns comparable with residential apartment developments.
Tim Last from CBRE spoke to The Australian Financial Review about their current involvement in off-the-plan office developments.
“We’re currently marketing a number of boutique office developments off the plan, all by developers who have previously been involved with residential projects and are now looking to do office projects,” he said.
Mr Last said well-located office space was in short supply and demand was certainly on the up.
“The average inquiries for each office campaign have increased to 67 in 2016 compared to 42 in 2015.”
Property developer Brendan Sullivan who told The Australian Financial Review there were some benefits to off-the-plan commercial developments.
“Investors have also been very active in these projects, as there are many benefits associated with off-the-plan commercial projects,” he said.
“These include tax savings related to depreciation, stamp duty savings and the potential to purchase the property up to two years from completion and benefit from the strong capital appreciation over this time.”