Australian Office Sublease Barometer June 2025

Key points: 

• National sublease volumes increased marginally over Q2 2025, ending the period at 177,895 sqm. This marked an increase of 0.9% quarter-over-quarter, but a decline of -27.4% year-over-year.
• Reductions in sublease volumes continue to be driven by a combination of leasing activity, the withdrawal of listings, and the conversion of some listings to direct vacancies.
• The increase in the second quarter was due to slight upticks in Sydney and Melbourne. Despite increasing over Q2 2025, sublease totals in both markets still remain well below where they sat in June 2024.
• The Tech, Media, & Telecommunications, Professional Services, and Finance & Insurance sectors remained the largest contributors to sublease availabilities in Q2 2025. These sectors account for 58.0% of sublease volumes this quarter.
• The average size of sublease listings continues to decline. The reduction in large listings has resulted in the average size of subleases falling to 1,318 sqm in Q2 2025. This marked a quarter-over-quarter decline of -2.1%.