Brisbane CBD Available Sublease Space Reduces By 21%

Latest figures reveal the availability of sublease office space in the Brisbane CBD has continued to decline, with just 41,700 square metres available since May 2017.

“This represents a decrease of 11,000 square metres (21%) in under 12 months and mirrors the positive net absorption of the wider CBD office market,” Colliers International Office Leasing Manager Kelly Moon said.

“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.

The latest Colliers International

Brisbane CBD Sublease Report recorded a total of 41,702 square metres of available sublease space, which was a decrease from 52,681 square metres in July 2016.

The average sublease size was 1,303 square metres with 71% of total sublease stock located within the Prime sector (Premium & A grade), 45% of total sublease stock from Mining & Energy occupiers, and 66% of total sublease stock was found within the Golden Triangle.

The report also said asking sublease rent gets discounted at an average of 43% compared to direct space, however transactions can be discounted even further.