logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
Australia
  • Global
  • United States
  • Albania
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • North Macedonia
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Global Workplace Solutions
      • Investment Management (CBRE Investment Management)
      • Property Management
      • Valuation & Advisory Services
    • Industries & Specialties
      • Agribusiness
      • Build-to-Rent
      • Building, Depreciation & Cost Consultancy
      • Government Real Estate Advisory & Transactions
      • Hotels
      • Industrial & Logistics
      • Office
      • Residential
      • Retail
      • Retirement & Healthcare
      • Sustainability
      • Flexible Workspace
    • Services for Investors
      • Debt and Structured Finance
      • Host
      • Institutional Investments
      • International Investments
      • Investment Accounting & Reporting Solutions
      • Structured Transactions & Advisory
      • Leasing & Advisory
      • Metropolitan Investments
      • Property Management
      • Property Sales
      • Recovery & Restructuring
      • Valuation & Advisory
    • Services for Occupiers
      • Facilities Management
      • Leasing & Advisory
      • Occupier Consulting
      • Portfolio Services
      • Project Management
      • Sale and Leaseback
      • Structured Transactions & Advisory
      • Transaction Management
      • Valuation & Advisory
      • Workplace
  • Properties
    • Agribusiness
      Hotels
      Industrial & Logistics
      Institutional Investments
      Metropolitan Investments
      Office
      Residential
      Retail
  • Research & Insight
    • Australia Research
      Asia Pacific Research
      Global Research
      Expert Opinions
      Talking Property Podcast
  • People & Offices
    • Pacific Executive Committee
  • About CBRE
    • [email protected] - LGBTQI+ Inclusion
      Careers
      Case Studies
      Client Tools
      Corporate Information
      Environmental, Social and Governance
      Investor Relations
      Media Centre
      Reconciliation
      The Place Makers

Previous

Press Release
Residential conversions a boon for Sydney’s key office markets

Next

Press Release
Global retailer expansion into Australia triggers new CBRE appointment
  • Home
  • About CBRE
  • Media Centre
  • Sydney leads and Brisbane lags in office sublease recovery

Sydney leads and Brisbane lags in office sublease recovery

7 May 2014
  • Email
  • Share
  • Tweet
  • Share

Sydney, 7 May 2014 – Sydney continues to be the national leader in relation to improvements in the sublease office market according to new research from CBRE.

CBRE’s latest Sublease Barometers show that the capital city markets are diverging, with Sydney, Melbourne and Perth all recording a decline in sublease space during the quarter, with increases occurring in Brisbane and Canberra over the same period.

Sydney and Perth recorded the biggest improvements in Q1 with the volume of available space dropping by over 18,483sqm in Sydney and by 9,502sqm in Perth. In Melbourne, the volume of sublease space declined by 4,200sqm.

The laggards were Canberra and Brisbane. CBRE Regional Director, Office Services, Andrew Tracey said a reducing headcount in many Federal Government departments was continuing to impact Canberra, where the stock of sublease space increased by 37% in Q1 to 34,424sqm.

 

In Brisbane, the availability of sublease space rose to 74,400sqm as at the end of Q1, well above the historic average.

CBRE’s Sublease Barometers track both the volume of sublease space and the trends occurring within different industry groups and market sectors.

The latest reports highlight that the market influencers - and future forecasts - vary significantly on a city by city basis.

Sydney, the city with the highest capital city exposure to the finance sector, was one of the markets most afflicted by sublease space post the GFC. However, the market has shifted as landlords negotiate deals with tenants to break their leases, at a cost.

“Twelve months ago, a significant proportion of sublease space on the market came from tenants who had relatively short lease tails but believed they had enough time to get rid of space. They did not understand that incoming tenants wanted long term certainty in deal structures,” Mr Tracey said.

“In recent months, however, we’ve seen a growing number of contracting tenants negotiate to surrender space as a result of long-term, direct lease deals being struck on their space. This is enabling owners to re-lease that space directly – using the break costs to cover some incentive and topping up the incentive pool to do new deals. This in turn firms up their weighted average lease expiry profile.”

The other major mover in Q1 was Perth, where the volume of sublease space fell by 9,502sqm to 60,720sqm. The majority of the reduction was due to withdrawals and sublease space reverting to direct rather than an increase in leasing activity.

However, Mr Tracey said CBRE expected an improvement in demand, particularly during the second half of 2014.

The city most afflicted by sublease space is Brisbane, although the volume of available space has dipped from the market peak of 83,000sqm of space in January this year. There are 42 individual leases available in Brisbane across 79 full or part floors, mostly being offered by the resource sector and the public service.

​​​​​


For Australian/international news or global stories, follow us on Twitter.

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 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 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.au.

​​

Media Contacts

Kathryn House Headshot
Kathryn House
Communications Director
Pacific
+61 2 9333 3585
+61 402 465 440
  • Corporate Information
  • Corporate Responsibility
  • Media Centre
  • About CBRE
  • Careers
  • Case Studies
  • People & Offices
  • Executive Committee
  • Investor Relations
  • Contact Us
  • Australia Privacy Policy
  • Global Web Privacy and Cookie Notice
  • Whistleblower Policy
  • Sitemap
  • Terms of Use
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • Youtube