Part 3/9:
Commentators point out that this office vacancy problem is emblematic of broader issues afflicting Victoria, Australia’s second-most populous state. Victoria has become known as the "protest capital," a term that encompasses a range of social issues including potholes, youth crime, and violent attacks, such as machete assaults which have garnered media attention. The high vacancy rate adds to this negative perception, suggesting a stalling economic confidence and deterring potential investments.
The vacancy rate stood at only 3.4% five years ago before the pandemic, and increased sharply to 18% today. This stark rise highlights the economic upheaval experienced over the recent years, exacerbated by remote working trends and fluctuating investment interest.