Our Love for Tenant Briefs Stays Strong..
In the six months to the end of June 2016, CI Australia received 145 tenant represented briefs (TRBs), from over 20 different industries, specifically looking to move into/within the Sydney CBD.
Of the total TRBs sent, approximately 41% remained in their premises either by renewing leases or acquiring more floors in the same building. 59% of TRBs moved location either to the CBD or within. Approximately 23% of those who moved were effected by compulsory acquisitions/given notice to vacate, however more companies, 32%, moved in order to take more space indicating growth across the Sydney economy.
Interestingly, of those that did increase/grow 52% declined in building quality which shows that despite business growth across industries, the pressure and strong rental market has forced tenants to make a decision between space and quality. This is a further indication of a tightening market and indeed an issue for the smaller/start up firms who normally grow rapidly.
It is clear that the large amount of buildings that have already been withdrawn from the market has and will continue to cause tenant displacement and a shortage of supply in the market. As a result of this, the market has shifted and office rents have shown massive increases particularly in the b-grade office market where rental growth has been in the double figures.
- 41% remained in their premises either by renewing leases or acquiring more floors in the same building
- 59% of TRBs moved location either to the CBD or within
- 32% of movers needed to upsize and 52% of those chose to compromise on office quality
- The four largest cohorts were Financial Services, Business Services, Tech firms and lawyers
- 23% of TRBs were effected by compulsory acquisitions/given notice to vacate due to the building being withdrawn from the market
For further information or to see how we can assist you and your property requirements, contact Charlotte Hesketh (0447 144 468) and Ben Kardachi (0419 230 278) from our commercial leasing team.