The availability of sublease space in the Brisbane CBD continues to decline, with just on 41,700sqm available as at May 2017, according to the latest Colliers International Brisbane CBD Sublease Report.
“This represents a decrease of 11,000sqm (26%) in under 12 months and mirrors the positive net absorption of the wider CBD office market,” said Kelly Moon, Manager of Office Leasing at Colliers International.
“The key positive influences were the strong transactional activity within the 480 Queen Street lease tails at Riparian Plaza and Riverside Centre, coupled with a number of subleases reverting to direct vacancies due to their short remaining terms.
“The resource sector still dominates, accounting for about 45% of the total available sublease space. This has improved however and will continue to do so as the rationalisation of this workforce slows coupled with a resurgence in commodity prices.
“There are still some attractive sublease opportunities out there, with the majority of the available space in the prime grade buildings within the Golden Triangle, offered at a significant discount compared to direct space,” Mr Moon said.
Summary of the key findings:
- A total of 41,702sqm of available sublease space – a decrease from 52,681sqm in July 2016
- Weighted average term of 3.8 years
- 71% of total sublease stock is within the Prime sector (Premium & A grade)
- 45% of total sublease stock is from Mining & Energy occupiers
- 66% of total sublease stock is within the Golden Triangle
- Average sublease size = 1,303sqm
- Median sublease size = 825sqm
- Asking sublease rent is discounted at an average of 43% compared to direct space however transactions can be discounted even further
Click here to view 60 sec video summary of the report.