For the local arm, growth in leasing activity was led by the industrial sector, a category that performed strongly across CBRE’s global business. Demand for warehouse space is outstripping supply across the major capital cities in Australia and New Zealand. Vacancy is at a record Australian low of 1.3 per cent and rental growth is accelerating.
“We also saw elevated leasing inquiries in the office sector and cost pressures eased as corporations prioritize their employee value proposition,” Mr Rowland said.
“This was demonstrated in our Australian relocation analysis for Q1, which highlighted a 7.5 per cent median increase in rentals paid to relocate versus the comparable period in 2021.”
The upcoming office deals, including the record $ 2 billion Southern Cross towers deal in Melbourne that CBRE helped broker and which is still in due diligence, will boost earnings subsequently as well.
CBRE’s valuations business benefitted in the first quarter as investors took advantage of historically low interest rates to refinance assets. The refinancing activity, along with positive market conditions in the commercial and residential sectors, boosted year-on-year growth in the valuations division, Mr Rowland said.