Australia Major Report_National Sublease Barometer March 2021
Total sublease availability remains high nationally at 417,030sqm; however, new sublease additions are levelling out from their previous peak across all markets.
Over the quarter, Adelaide and Sydney were the only two markets that recorded a fall in sublease space at -24% and -6.5%, respectively, whilst Brisbane, Perth and Melbourne continued to expand and recorded an increase of 11.6%, 3.4% and 0.5% respectively. However, we are anticipating a potential decrease in Melbourne over the next 2-3 months.
Contraction remains the primary driver for sublease across all CBD markets but increasing share in relocation and consolidation, attributing 17.5% and 3.4% of total sublease space nationally in March compared to 16.2% and 2.9% in December.
By industry, sublease space levelled across most industries over the quarter, except Education and Training (up 124% q/q), Transport, Postal and Warehousing (up 73% q/q), and Manufacturing (up 17.6% q/q) whilst Construction, Administrative and Support Services, and Utility services were the top three industries recorded the largest percentage fall by 53%, 41% and 22% over the same period.
By size range, the sub-500sqm remains the bulk of the available sublease by the number of tenancies. Whilst the 1,000-2,000sqm size bracket continued to expand and increased by 23% across 58 tenancies over the quarter compared to 49 tenancies in December; the 2,000+sqm size bracket recorded a fall by 9% across 51 tenancies compared to 55 tenancies over the same period.