Docklands threat to CBD
March 29, 2013
Docklands poses a clear risk to the central business district's office vacancy rate, CBRE research suggests.
Harbourside development on the western edge of the city has been the engine room for growth in Melbourne's CBD for the past decade and will continue that role over the next two years, according to CBRE's latest Australian Viewpoint.
But while much of that growth in stock has been absorbed against strong background conditions in the office occupier market, ''forthcoming supply in Docklands poses clear risks to CBD vacancy'', it said.
To date, the market appeared to have digested the extra space as part of a cyclical ''slowing'' after a period of strength.
But the significant level of development within Docklands over the next 12 months is ''expected to outstrip demand'', CBRE maintains.