The national CBD office sublease volumes decreased to 200,304 sqm in Q3 2024 – the lowest level since early 2021 and nearing pre-pandemic levels.
CBRE’s Q3 Australian Office Sublease Barometer shows the national sublease volumes fell 44,703 sqm (-18.2 per cent) over the quarter.
Sublease volumes in Melbourne fell by 34.3 per cent and Brisbane declined by 21.8 per cent. Subleasing volumes in Perth and Adelaide increased by 25.2 per cent and 1.2 per cent respectively.
The report showed sublease availability rates in Sydney remained flat over the quarter with a rate of 1.6 per cent.
CBRE’s Associate Director of NSW Research Thomas Biglands said the national declines were primarily driven by a reduction in sublease listings in Melbourne and Brisbane.
“[This is] due to leasing activity in listed space, the reclassification of some sublease space as direct availability, and the withdrawal of some sublease space by occupiers.”
The report noted the slowing of listings from large corporate occupiers in the first half of 2024 continued in Q3.
The average size of subleases shrunk to 1,565 sqm – a quarter-over-quarter decline of 26.5 per cent. This average is nearing pre-pandemic levels and is the lowest average figure since 2021.
The report highlighted the largest contributors to sublease availability in Q3 were the Finance & Insurance sector and Technology, Media & Telecommunications sector.
Volumes in each of these sectors declined over the past three months.
CBRE’s Pacific Head of Office Leasing Tim Courtnall said these sectors accounted for a combined 52.7 per cent of the national volume in Q3.
“These sharp declines in sublease volumes suggest the right-sizing cycle by corporate occupiers is nearing an end. We are also seeing a number of larger occupiers look through the current economic headwinds and start to think about future headcount growth.
“The other key contributing factor is the proactive approach of landlords assisting their customers and complete extensions, allowing for these tenants to surrender surplus space.”