Adelaide, 20 June 2016- Adelaide’s sublease market is the second smallest in the country according to the latest Sublease Barometer report from CBRE.
Sublease space in the Adelaide office market totaled 29,180sqm at the end of Q1 2016 compared with 52,400sqm in Sydney, 61,300sqm in Melbourne, 72,500sqm in Brisbane, 88,800sqm in Perth and 16,400sqm in Canberra.
CBRE Director Michael Pfitzner said that the low sublease space reflects Adelaide’s stable leasing market which does not experience the booms and busts of other markets such as Brisbane and Perth.
“The majority of the available space is due to Santos not using their accommodation at 50 Flinders Street, with over 30% of the available sublease space coming from this particular property. Otherwise the larger chunks available are engineering subleases which have been a direct result of the downturn in the mining sector through South Australia,” Mr Pfitzner said.
The report states that of the options available, 64% were less than or equal to 1,000sqm in size. While there were just five options greater than 2,000sqm, they made up 64% of total sublease availability by area.
Of the sublease options available, ten were for A-grade space, making up 68% of total availability, while 12 (32%) encompassed B or C-grade stock.
“The majority of the sublease market is in the A-grade to premium market and with Adelaide’s flight to quality trend we anticipate good interest in these options going forward.”
“The positive with the sublease market in Adelaide is that the majority of properties are already fitted out. CBRE’s research shows that fitted out space is currently in demand given the difficulty that company’s face in securing funds to undertake their own fitouts,” Mr Pfitzner concluded.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.