Sydney sublease availability shrinks to a pre-pandemic low

The supply of office sublease space in the Sydney CBD has stabilised at its lowest level since the pandemic onset as leasing demand strengthens.

As at the end of Q2 2024 just 80,088sqm of sublease space was available in the CBD, down 8,670sqm on the previous quarter.

CBRE’s Sydney CBD Q2 Sublease Barometer report highlights that strong demand for high quality space has been a key contributor to the healthier outlook for the Sydney office market, with the city’s sublease vacancy rate shrinking to 1.5%.

CBRE’s Associate Director of NSW Research Thomas Biglands noted, “High quality sublease space has been in strong demand over the past six months, with several leases signed. This has been the strongest contributor to the decrease in Sydney sublease volumes, with our analysis showing that the number of higher quality sublease listings above 1,000sqm has dropped from 28 to 23.”

Mr Biglands said large sublease additions had also continued to slow in 2024, with only three new 1,000sqm+ lots added to the market in Q2.

Sydney CBD historical sublease volumes and vacancy rates

CBRE Senior Director Office Leasing Chris Fisher noted said that despite some negative sentiment in the market, CBRE continued to see strong demand for office space across the CBD.