This article is from the Australian Property Journal archive
LARGER tenants looking for sublease bargains in Sydney CBD will be let down, according to CB Richard Ellis.
CBRE’s Sydney CBD Sublease Barometer shows that there are only two lots of more than 2,000 sqm of space currently available.
CBRE NSW managing director James Patterson said the sublease market had remained relatively stable in the first half of 2009 and was continuing to track below the highs predicted last year.
“By far the largest number of opportunities in the sublease market involves space of less than 500 sqm, while on a sqm basis the 1,000-2,000 sqm range has the most space available. The majority of the space on the market continues to be office floors vacated by tenants in the finance industry.
“The legal and accounting sectors have also been hit hard and have put a significant amount of space back onto the market,” he added.
Patterson said the main beneficiaries have been smaller businesses looking for attractive sublease deals on fitted out office floors in the CBD.
CBRE office services director Jenine Cranston revealed a slight decrease in the stock of city sublease space between May and June – from 81,380 sqm to 80,730 sqm.
Contraction continues to be the main driver of the sublease market accounting for 68% of the sublease space available as companies downsize to reduce costs.
Cranston said the city core remained the location most affected by sublease vacancy.
“The Western Corridor has also been significantly impacted by the increase in sublease availability.
“Both of these areas have a significant share of finance, insurance and business services firm which are being impacted by the global downturn,” she concluded.
Australian Property Journal
