 Capital Markets Investment Review 2023 |
Office Capital MarketsInvestment Review 2023We are pleased to share with you the Office Investment Review, which provides a comprehensive look at transaction activity, industry trends and key buyer groups that were active in 2022. 2022 recorded $14.4 billion in office sales, a 19% decrease on prior year with NSW accounting for 46% of the total sales volume. 2022 started strongly off the back of a record-breaking 2021, however market disruptions led investment demand to slow as the year progressed. Whilst there has been evidence of yield softening and value declines has occurred, this has differed by grade and location, with Prime assets retaining value as investors seek to consolidate their holdings into Premium Australian assets. With elevated interest rates and inflation expected to continue throughout early 2023, insights from our Experts on the year that was, and the year ahead, have never been more pertinent with 2023 anticipated to offer compelling opportunities and dynamic strategies.  |
1.Global Pricing Reset (GPR) - more blip than bloodbathTraditionally capital markets and leasing move in tangent, with leasing metrics during the GFC falling in alignment with capital values. This has not occurred during the GPR, with a recovery in leasing fundamentals is already suggesting the current dip in capital values will not be as severe and deep as first thought. |
2.Vacancy less volatile overall, but bifurcation emergingDespite 450,000sqm of new and refurbished stock re-entering the market in 2022, the national vacancy rate only increased by 1.0 percentage point to 12.5%, with vacancy notably lower in buildings less than 10 years old as the war for talent drives occupiers to seek a best-in-class on floor experience. |
3.Prime Office still Favoured among investorsThe Colliers third annual Global Investor Outlook survey highlighted the enduring appeal of the Office sector to investors internationally, with 64% of investors retaining Office as their top sector pick and 74% of respondents favouring established larger cities.  |
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Our Business LeadersAustraliaVictoriaMetropolitan SydneyACTSouth Australia |
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