The Office Perspective | 5 November 2024

The JLL Victorian Office Investments team's latest edition of The Office Perspective is now out!

Please contact me on 0415 767 915 / [email protected] or any member of the JLL team if you would like to receive our more detailed weekly updates via email each Monday morning.

This update will cover:

• JLL Research – Q3 2024 Melbourne Office Report
• Wall Street Journal – Bosses are calling workers back to the office

JLL Research – Q3 2024 Melbourne Office Report

JLL’s market leading research team have just released their Q3 Melbourne Office Report.

Please see our concise summary below for your reference. Should you wish to receive a full copy of this report, please contact any member of the 仲量联行 team.

Rental Market Analysis:

Office Net Absorption:

Wall Street Journal – Bosses are calling workers back to the office

The Wall Street Journal recently published the below report which demonstrates the overarching message from businesses for their employees to return back to the workplace.

This is a positive step in the right direction for the international market, and we anticipate that this trend will continue.

Wall Street Journal - Bosses are calling workers back to the office

Key points of the article include:

• More companies are requiring workers to return to the office, reversing pandemic-era remote work policies.
• One-third of companies now require workers in the office 5 days a week, up from 31% in the previous quarter.
• Major companies like Amazon, Dell, and 3M have announced stricter in-office policies.
• The office market shows signs of stabilising after years of decline.
• However, the challenges remain as vacancy rates are still near record highs and office loan delinquencies are increasing.
• Many leases signed pre-pandemic have yet to expire, potentially leading to more vacated space.
• Financial and AI firms are expanding office footprints in various cities.
• High-amenity office spaces are attracting workers back.
• Investor interest in distressed office properties is rising as prices have fallen.
• The largest refinancing for a single office asset ($3.5 billion for Rockefeller Center) signals improving market sentiment.

We hope you have enjoyed this edition of The Office Perspective.

Please reach out to our specialised team if there is anything we can assist you with.

Tim Carr - JLL Victorian Office Investments

Capital Markets at JLL