Sydney CBD Sublease Barometer Q1 2024

Key Points:

• Sydney CBD sublease availabilities ended Q1 2024 at 88,758 sqm, declining by 41,000 sqm over the first quarter. This brought the CBD sublease vacancy rate to 1.7%.
• Sublease levels have decreased substantially since they surged in 2023. Sublease volumes are now at their lowest levels since January 2022.
• The Banking & Finance sector continued to account for the greatest share of sublease availabilities in Q1 2024, accounting for 32% of the CBD total. The next largest contributor to sublease volumes was the Tech & IT sector, accounting for 17% of the CBD total.
• The Core and Walsh Bay precincts saw elevated levels of sublet leasing activity in Q1 2024. Sublease volumes in these precincts declined by 33% and 11%, respectively, over the period. As such, the Western Corridor now accounts for the largest share of sublease availabilities by volume at 33% of the CBD total.
• Contraction or shifts towards hybrid working are the most common drivers for occupiers looking to hand back space. These factors were the driver behind 79% of the sublease space on the market as of Q1 2024.