Office sublease space ticks up

The first increase in Perth’s office sublease space in almost three years is an indication of growing confidence in the market, according to CBRE.

The amount of sublease space in Perth has been decreasing since peaking at 98,304 square metres in December 2015. It reached a low of 21,860sq m in March this year, but a 15 per cent increase in the three months to June 30 has resulted in 25,170sqm of sublease space available.

CBRE senior direct office leasing, Andrew Denny, said the increase, after nine consecutive quarters of decreases in sublease space, reflected a growing confidence from businesses that any surplus space they had would be taken up by new tenants.

“Businesses are offering the space because they are confident it will go, which is something we haven’t really seen for five years,” he said.

“The recovery in office markets we are seeing is not stalling, it is still moving forward.”

Mr Denny said office space demand was being driven by the resource sector, government and co-worker office providers.

The CBRE figures support data published in early August in the Property Council of Australia’s mid-year office market report, which showed Perth office vacancies had fallen from 19.8 per cent to 19.4 per cent in the six months to July.