The future of a growing Melbourne is in our policy makers’ hands

A looming shortage of office space in Melbourne’s CBD could ultimately cost the state economy as much as $7 billion in lost jobs, according to consultants Urbis.

The 104-page report, commissioned by the Property Council of Australia – which is pushing for reforms to CBD planning rules – analyses expected growth in the city’s working and residential population to 2036.

To accommodate that growth, Melbourne’s CBD will need another 9.1 million square metres in floorspace, including 4.4 million sq m of commercial space.

Under current controls, and taking into the extent of constrained land, the CBD is “theoretically capable of accommodating the required floorspace growth, but only just”, the report found.

“This analysis implies very little growth potential for the CBD beyond 2036, while it should also be recognised it assumes all available sites are developed to their maximum potential; a highly unlikely outcome,” it said.

“Simply put, the CBD is facing an imminent shortage of sites to accommodate the forecast growth.”

The above is an excerpt from an article first published in the Australian Financial Review. Click here to continue reading.