Strata Office Space

Lower interest rates and demand for smaller office space has brought the strata sector back into the spotlight, but the outlook for the medium term is mixed.

Prices for square metre have dropped considerably over the past two years but industry people are unanimous in declaring prices will not drop further.

Those coming into the market will also have the advantage of lower office fit out costs.  Investors who are owner occupiers will achieve attractive quotes for a commercial office fitout.  Those investors who will offer allowances to the prospective lessee will be conscious of good prices for office design work at the moment.

Sales which occurred in 2009 have been dominated by owner occupiers at rates somewhat in line with 2008 results.  CB Richard Ellis’s strata team said that despite tight credit conditions, cashed up private investors remain attracted to the strata sector.  The firm’s latest report says, the new year has brought with it, renewed demand in the CBD strata office market.

In the meantime, OMG Projects are receiving well above average numbers of requests for space planning design work.

Project management at OMG is being pressured to complete office fitouts by Xmas.  The level of forward contracts is higher in November and December 2009 than it has been for the past twelve months.

Strata office space has always been an attractive proposition.  Most purchasers would want to feel confident prices won’t drop.   They will weigh up the total cost of purchase price with office interior works.