incentives

n. stimulus, inducement, enticement, encouragement

Demand for office space in Melbourne is forecast to be remain strong in 2005 despite the widespread gloom about commercial property, according to new research.

The BIS Shrapnel study found that the take up rate of office space in Melbourne's CBD in 2004 was higher than in the boom days of the late 1980's and forecast strong demand to continue throughout 2005.

The study's author Maria Lee said the bright forecast came at a time when there was general pessimism about the future of the Melbourne office market and leasing incentives were being offered to tenants.

Ms Lee said the strong demand for office space in 2004 had surprised many observers and had been passed off as being the result of tenants bringing forward leasing commitments because of the availability of low rents.

[ Melbourne office rentals defy pessimists ]