Property valuation and current market value
The review be conducted by private sector consultants with experience in corporate real estate issues. A formal Government policy on this issue be developed based on the results of this review. Return some focus to the pressing needs of the capital city and public works projects of benefit to the entire state.



The Property Council, represented by QIC's Craig Newnham, has met with Council officers to discuss the proposals. The importance of maintaining quality control throughout the mall is not disputed, but unreasonably prescriptive approaches will only deter innovation and create a lack of diversity within the precinct. A submission to the BCC will be forwarded shortly and may offer a more constructive platform which meets with Council concerns about unsightly advertising but which does not restrict the rights of property owners and their tenants to enjoy the full value of their premises.

A full copy of the Property Council's June 1999 submission on the CityPlan can be found at policy submissions at this web site. The methodology of securing the property estimation, aides to gauge the possible deals value it would draw in, on the off chance that it were to be put on special in the open business sector. The vacancy rate hit a new cyclical low in the first quarter, most likely the lowest rate in a quarter of a century. For this, the market can thank a tidal wave of demand churned out by the overheated economy pitted against an interest-rateinduced decline in construction activity. Rent growth, which had moderated, picked up speed again. Absorption activity and rent increases were especially healthy for Class B properties in the nation's large central business districts.

Internet, communications, new media and other technology-related small businesses flooded into these long ignored properties, in some cases turning around entire neighborhoods in a matter of weeks. Rising interest rates, which have already reduced construction activity, may reduce tenant demand only gradually over the span of several quarters, keeping the market tight.

The overall market statistics are heavily influenced by a handful of big cities that are extreme landlord markets. Conditions are more balanced in most mid-sized cities and even a few larger markets such as Chicago, and should remain so in the near future. For landlords, the news could hardly be better. Demand for office space accelerated in the first quarter responding to the nation's never-say-die economic expansion.

As a result, rental rates, which had shown signs of moderating, spiked upward again. The average asking rent for Class A space, weighted by the size of each market that Grubb & Ellis tracks, increased by 10.2 percent in the first quarter compared with the first quarter of 1999.