BRIEF – INVESTMENT – 4 February 2010- THE Property Council’s latest Office Market Report showed all is still not well on the office investment front, as vacancy increased from 8.3 percent to 9.3 per cent in the half-year to January 2010, “the highest since January 2005,” the PCA said.

PCA chief executive officer Peter Verwer said additional new supply played a part in the vacancy
increase, but net absorption – the best indicator of tenant demand for office space – was
extremely low for the period.

“More than 387,000sqm of office space was added to the Australian market in the six months to
January 2010, one-third more than the historic average,” Mr Verwer said.

“But the big issue facing the market is continuing weak demand. While our research shows an
encouraging swing toward positive tenant demand in the past six months, it is just 1/20th of the
historic average.”