Sydney CBD Sublease Barometer Q3 2024

Key Points: 

• Sydney CBD sublease availabilities ended Q3 2024 at 81,049 sqm, increasing by 961 sqm over the quarter. This brought the CBD sublease vacancy rate to 1.6%.
• While sublease volumes increased marginally this quarter, the expansion was driven almost entirely by the addition of a single listing, brought on as a result of a future relocation to new premises.
• The average size of sublease listings continued to decline this period. The average sublease size in the Sydney CBD fell from 1,601 sqm in Q2 2024 to 1,422 sqm in Q3 2024, a decline of -11.2%.
•  The Banking & Finance sector continued to account for the greatest share of sublease availabilities in Q3 2024, accounting for 35% of the CBD total.
•  Contraction or shifts towards hybrid working remain the most common drivers for occupiers looking to hand back space. These factors were the driver behind 65% of the sublease space on the market as of Q3 2024. Relocation was the second most impactful driver this period accounting for 20% of the total sublease volume.