The Docklands in Melbourne has maintained the lowest office vacancy rates in the central business district contributing about 38,278 square meters to the city's net absorption.

Vacancy rates in the Docklands dropped to 2.1 percent from 2.6 percent in the last six months says the Property Council of Australia. Moreover, the area solidified its focus as an insurance and finance hub with the completion of 717 Bourke Street.

In comparison, neighboring Spencer Street precinct registered the highest vacancy rate in the district rising to 10.7 percent. Areas where construction activity slowed down reported changing vacancy rates starting with Flagstaff with its vacancies slowing to 7.4 percent to 11 percent.

Civic precinct vacancies were also just a little more than 7 percent and its tenants mostly related to agriculture and mining. For 2011, 40,169 square meters of new space is forecast to available for the market with another 100,375 square meters slated for 2012.

The Property Council's Victorian executive director, Jennifer Cunich, said the figures indicate how the Melbourne market had been resilient. She said: ''It shows Melbourne businesses are expanding and looking for more space, and that's a really good sign for Melbourne's economy."

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