Laura and Emily's high school in Mentone. Credits:

Melbourne's education sector may become the next victim of CBD's rising rates, according to Herron Todd White.

Richard Jenkins, the research director of Herron, said the CBD office rental increases were predicted for the next 12 months following with a shortage of available stocks.

“These factors, along with a dramatic decline in immigration, may affect the education and training sector, forcing them to find alternative space or close down,'' he said.

Mr. Jenkins reported that office space occupied by the education sector has peaked at 43 per cent to almost 200,000 square meters since 2000. This was 12 per cent of the secondary stock total, making the education sector the highest employer compared with other Australian CBD markets which was only at 4.6 per cent.

However, several facilities have closed over the past year, including three educational institutions: GEO's International College, Global Campus Management and Meridian International School.

Mr. Jenkins said education has utilized the most higher working space ratios than normal office users and occupied the secondary stock. Nevertheless, Melbourne's cost competitiveness was decreasing.

''The real question for the secondary space vacated by educational users is what suitable alternative use can the building provide? Mr Jenkins said.