Tide continues to turn in Perth office market as sublease drops to 5 year low
Tide continues to turn in Perth office market as sublease drops to 5-year low
| 18 October 2017
Sublease space in Perth’s office market has dropped for the seventh consecutive quarter – reaching its lowest level in almost five years.
CBRE Research shows the volume of sublease space decreased by 27% during the third quarter of 2017, with just 42,383sqm now available in the CBD market. The reduction of 15,288 sqm is the largest single sqm quarterly reduction since 2012.
Sublease space in Perth’s CBD office market peaked at 98,304sqm in December 2015.
CBRE’s Andrew Denny said an upturn in the state’s mining sector had helped support business expansion in the Perth market.
“The major driver has been withdrawal of sublease space by the state’s resources sector, which has now reversed direction in regards to its office space utilisation,” Mr Denny said.
“This is the seventh consecutive quarter of reduction in sublease space, with availability nearly back to what it was in September 2012 when the market first saw a change in direction.
Overall, Perth CBD office vacancy fell for the first time in nearly five years during the first half of 2017, from 22.5% to 21.1%.
“The latest figures are another key indication that the tide has turned in Perth’s office market. In particular, the scale and speed of the reduction in sublease availability is surprising, and points to a faster market recovery than expected,” Mr Denny added.
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.