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The demand for sub-lease space has accelerated considerably.

Sub-lease office space in hot demand

According to leading independent commercial property specialists, Sheffield Property, Perth’s office market is heating up – with the recent take up of high quality sub-lease space indicating a sustained improvement in the CBD and City Fringe commercial office market. 

“The demand for sublease space has accelerated considerably this year,” said Sheffield Property Director of Leasing Roly Egerton-Warburton.

Mr Egerton-Warburton said tenant demand for quality fitted out premises, coupled with tenants withdrawing space from the market to accommodate their own expansion, had created a shortage of sublease opportunities and a shortage of fitted out options.

“The number of mining services and government infrastructure-related contracts has increased, which is having a positive knock-on effect with firms requiring office space immediately to accommodate their newly awarded projects,” he said.

“Sheffield have recently concluded a number of sub-lease transactions, including a lease to Power Ledger – a fast-growing tech start up business dealing in energy and blockchain trading, which took up 430sqm within The Palace at 108 St Georges Terrace.

“Sheffield also completed a sub-lease transaction of 600sqm with a national law firm within 108 St Georges Terrace. Both spaces provided a turnkey solution for tenants seeking whole-floor fitted out premises for immediate occupation.”

Sheffield Property has recently been appointed to market a further 860sqm for sub-lease within the same asset, providing a fitted out and furnished solution for an incoming tenant. 

“Level 28 of 108 St Georges Terrace is a highly impressive whole floor tenancy with an exceptional fit out and views across the city and Swan River,” said Mr Egerton-Warburton

The agency is also finalising a further 7,000sqm of sub-lease deals, which are due to be executed by the end of the month.

“With quality sub-lease options diminishing, we are expecting to see continued improvements in net rent growth in the commercial CBD market,” he said.

For more information about sub-lease opportunities, please contact Roly Egerton-Warburton at roly.ew@sheffieldproperty.com.au or call 0420 959 145.

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