Docklands leads the way in commercial property

Melbourne commercial property vacancy rates are the toast of the nation and Docklands is leading the way.

Despite the addition of an extra 47,605sqm, Melbourne’s office vacancy rate has fallen from 6.5 per cent to just 6.3 per cent and Docklands has the lowest vacancy rate.

According to the Property Council’s Office Market Report released last month, Docklands accounted for a large proportion of the CBD’s 38,278sqm net absorption, recorded in the six months leading to January.

Property Council Victorian executive director, Jennifer Cunich, said the manner in which Docklands and the adjacent Spencer precinct continued to hold strong showed that the master-planned community was developing nicely.

“The Docklands precinct demonstrates that good planning and vision can result in successful master-planned communities with a mix of residential, retail and commercial space,” she said.

“With 10 years to go until the Docklands vision is complete, this new wave of campus-style developments with a focus on sustainability, shows the Docklands vision is becoming a reality.”

According to the report, the development of Docklands has helped Melbourne cope with the increased demand for office space.

“It is important with the growth Melbourne is experiencing that we ensure the opportunity to continue developing in these commercial precincts is not hindered by unnecessary obstacles, such as reduced density requirements.”

Over the next two years more than 3.4 per cent of the market’s current size is due to be added with at least 50 per cent of the additional 140,544sqm already pre-committed.

Despite the overall decrease in the vacancy rate, St Kilda Rd experienced an increase to 12.9 per cent, its highest level of vacancy since July 2004, and there is no new stock planned for the precinct in the short-to-medium-term.