Australia Report Figures - National Sublease Barometer Q3 2022

National sublease availability has gathered pace over the quarter, with total sublease availability declining by 7.3% q-o-q in Q3 2022. Our National Sublease Barometer Report for Q3 2022 highlights the changes in sublease space on markets across the Australian CBDs throughout the September quarter, as well as breaking down availability by characteristics such as building grade, industry and expiry.

Key highlights:

• National sublease availability declined by 7.3% q-o-q to 246,027sm, with Melbourne and Perth being the only markets to record a decline in sublease availability.
• Over the quarter, about 75,600sqm of sublease space was leased/withdrawn, offsetting c.56,300sqm of new additions to the market. Melbourne recorded the largest fall in sublease availability of c.29,500sqm q-o-q, whereas Perth recorded a net decrease of 1,400sqm q-o-q.
• Brisbane recorded the largest increase in sublease availability of c.7,400sqm q-o-q – the first quarterly increase after remaining in the downward trajectory for five consecutive quarters. Adelaide also recorded a net increase of 4,200sqm whereas Sydney had held relatively stable with a net increase of less than 100sqm recorded over the same period. Nonetheless, total sublease availability for Brisbane, Adelaide and Sydney remain well below its previous peak in 2020/21.
• Sublease availability is expected to remain fluid as occupiers continue to assess their future space requirements on the back of the impact of the hybrid-working model. Nonetheless, the ongoing flight-to-quality and increasing demand for fitted space are anticipated to offset the potential new additions in the near term.