Melbourne property managers experience a rise in pre-lease agreements

Melbourne's market is set to experience increased levels of pre-lease agreements, according to a report by professional real estate analyst group Jones Lang LaSalle.

The June quarter saw demand for industrial property undergo increases in rental rates - a pressing concern for businesses still suffering from depressed retail sales and low consumer spending.

In turn this has led companies to seek out alternate ways to save money - including reducing occupancy expenditure by entering leasing agreements off-the-plan.

Victoria performed well in the second quarter of 2011 in terms of retail growth, reaching levels of 4.7 per cent when other states experienced a string of negative industry results - factors closely monitored by property management programs.

The report indicates that the manufacturing market may still be suffering from the combined effects of an economic slowdown and fluctuations in exchange rates eroding the power of international exports.

But concerns over both these markets appear to be easing, with the head of research at Jones Lang LaSalle Andrew Ballantyne saying that industry confidence was increasing and that the bulk of developments were already lined up for leasing commitments.

"'Companies are looking for modern, efficient, well-located industrial property to pre-lease," asserted Ballantyne.