With office leasing markets hard-hit by the COVID-19 pandemic and long lockdowns, vacancy levels have surged since the start of the pandemic, putting significant pressure on landlords.
With staff relegated to working from home for many months and uncertainty over future numbers coming into the office, space requirements have certainly been given a shake-up. However, businesses that know their numbers and are confident in their future headcount and size requirements are seizing the opportunity of the favourable market conditions – with up to 40% rent reductions in some cases – and locking into long term leases.
Ben Kardachi, CI Australia’s Head of Office Leasing, says recent transactions tell a compelling story: “Businesses who have a clear direction of the future and long-term head count are taking advantage of the attractive incentives and congenial terms on offer by landlords to lock in longer leases than average”. He added: “Traditionally, we would generally be looking at 3-5year terms, but we are now seeing an increase in commitments from 7 to 10 years across the Sydney CBD and North Shore. It’s a good time to be a tenant who has confidence in their business future”.
CI Australia has recently signed leases of 7-10 years in the CBD and North Shore markets as evidence of this, including:
- Stanton & Stanton Law firm moved to 525sqm on whole level 5, 4 Martin Place in the CBD locking into a 10-year lease term
- Financial Keys have leased 80sqm at Suite 10.01, 14 Martin Place on a 7-year lease term
- Land Title Solutions have leased 400sqm at Suite 2, level 6, 205 Pacific Highway, St Leonards for a 7-year lease term
- Cundall Johnson & Partners leased 564sqm on level 6, 99 Mount Street, North Sydney for a 7-year lease term
Recent 5-year leases include:
- Omni Bridgeway have leased whole Level 7, 35 Clarence Street, Sydney
- Thomax Technology have leased Whole Level 1, 23 Ryde Road, Pymble
- Safework Labs have leased Suite G.01 &1.02, 4-10 Bridge Street, Pymble
- Wellpet have leased S203, L2, 23 Ryde Road, Pymble
- Be Software have leased S201, L2, 23 Ryde Road, Pymble
For further information, please contact:
Ben Kardachi, Director, Office Leasing
M: +61 419 230 278