As federal and state governments scramble to bring fiscal balances under control, the impact of savage public sector job cuts is flowing through to the commercial property market in Australia.

Releasing its latest quarterly indicator, BIS Shrapnel says underlying demand for office space – the amount of net absorption that would result from the change in employment in purpose-built office buildings assuming no change in the workspace ratio – came in at just 125,000 square metres around the nation, well…