Analysis of tenant moves in the past year from Q2 2021 to Q1 2022 has shown that 48 percent of organisations that signed up for office space in the Melbourne CBD took additional space.

Between Q2 2021 and Q1 2022, a total of 45 tenants occupying space of more than 1000sqm expanded in the CBD out of the 93 remaining tenant groups.

JLL’s Joint Head of Office Leasing- (Victoria) James Palmer said, "We are seeing a number of organisations leasing the same amount of office space upon relocation in anticipation of staff returning to the office as well as expected headcount growth over the medium-term.”

According to JLL’s analysis, the sector that is currently in expansionary mode for their office space requirements is the professional services sector.

Expansionary activity involving financial services tenants during Q1 2022 includes Judo Bank, more than doubling their office requirements from 1094 sqm at 40 City Road, Southbank to 2,721 sqm of office space at 100 Queen Street, Melbourne.

“The professional services sector is experiencing increased demand and our analysis shows that the sector ranks as one of the most active industry sectors in the Melbourne CBD for Q1 2022,” Mr Palmer said.

Workers are making their way back to the office with the amount of office workers returning to the city has increased drastically, sitting now at 48%, up from 36% a month ago, according to the Property Council’s occupancy figures.

“The demand for office space has not reduced in volume and with the workforce increasingly returning to the office, confidence is rising, and decisions put off over the past two years will drive activity as we look to the second half of 2022,” Mr Palmer concluded.