Scott O'Neill

Well, it's coming off a low base, Craig.

So there's good deals out there.

But at the end of the day, a lot of the sellers are very cashed up super funds and people with hundreds of millions of dollars.

They don't just sell assets because there's a slight bump in the vacancy.

And the vacancies are dropping right now.

They roughly doubled.

They were sort of around 6%, 7%.

vacancy rates and they got into double digits due to COVID.

They're retreating now because people are going back to the office.

There's going to be a future decrease in the vacancy rates too as they let more people in the country.

Immigration is going to push people particularly to Sydney, Melbourne, Brisbane and a lot of them are going to work desk jobs and this is going to squeeze the current market.

The other side is build costs are going up.

So, to supply new buildings, it's going to be more difficult in future.

So, rising population, less building, that's going to contribute to a tighter vacancy rate.

So, the long-term investor who's spending money in office space, they don't look through all these media headlines and saying offices are dead because it's just an overstatement.

And a smart investor knows

that.

And there's also subsectors of the office market that are going very well, like suburban office where people are preferring to work closer to home.

So if anything, vacancy rates have dropped.

So again, there's markets within markets, but overall, that's the reason it's not dropping because you've got a non-desperate seller selling to another long-term investor and they value the investment and they'll pay the proper market value for it.