Sydney and Melbourne rank high in the latest global Skyscraper Index, coming in at sixth and 15th respectively, according to Knight Frank’s Global Cities 2018 report.
The Skyscraper Index, which examines the rental performance of commercial buildings over 30 storeys, shows that upper-floor prime rents in Sydney’s skyscrapers grew by 3.4 per cent in the six months to the second quarter of 2017 with rents at $US1149 ($1470) per square metre per annum.
Melbourne’s skyscrapers came in at 15th position, with rental growth increasing by 4.6 per cent in the six months to the second quarter of 2017 with rents at $US608 per sqm per annum.
The standings for the two cities have been boosted by the strong office leasing market, thanks to limited new supply and the arrival of tenants in the technology and shared office space sectors. As the traditional CBD workers in banks and insurance decline, the new players are snapping up the space.
Businesses of Google, Twitter, Amazon, LinkedIn and WeWork, among others, have expanded their office leases in the Sydney and Melbourne capital cities. More are on their way, according to agents.
Cbus is adding to the Melbourne skyline with the Collins Arch project.
Knight Frank’s head of office leasing, Australia, David Howson said it was not surprising that Sydney and Melbourne both sat within the top 20 of the global index.
“Both Sydney and Melbourne are globally in-demand cities, with leading businesses looking to establish a foothold in the cities and population growth driving future activity and demand,” he said.