December Edition: 2024 Office Market Update & Happy Holidays From Tenant CS
Welcome to the last edition of Tenant CS's Monthly Roundup for 2024, where we share company news, articles you may have missed and helpful tips for commercial tenants.
Let's get started...
2024 Wrap Up & Where The Market's Headed In 2025
As we look back on the year that was, we've wrapped up the market stats for the year and share some insights on what to expect in 2025 (and beyond) across the Sydney, Melbourne and Brisbane commercial leasing markets.
Vacancy
Over the past year, Sydney and Brisbane saw vacancy rates improve, dropping to 11.6% and 8.5%, respectively, while Melbourne’s rate surged to a 29-year high of 19.6%, driven by new stock and weakened demand. However, reported rates often misrepresent true market conditions, excluding spaces under construction, subleased areas, or those with excess space tied to expiring leases.
With average lease terms at 4.3 years, many tenants still remain locked into pre-COVID footprints. Meanwhile, a softer job market has shifted workplace dynamics, with companies downsizing and enforcing stricter attendance policies to align with hybrid trends and new operational needs.
Rents & Incentives
Incentives are rising across Sydney, Melbourne, and Brisbane to offset higher face rents, with ranges up to 40%. While Premium and A-Grade spaces see strong demand, B-Grade incentives in Melbourne and Brisbane are reducing effective rents. Despite slightly lower vacancy rates, elevated incentives persist due to overstated costs in speculative fit-out markets.
Subleasing
Sublease vacancy rates have decreased this year, with Sydney at 1.6%, Melbourne at 1.9%, and Brisbane at 0.6%. While leasing activity and reclassification to direct leases contributed to the drop, reported figures may underestimate the true amount of space tenants are eager to offload, whether through subleasing or downsizing.
Read the full article here: https://www.tenantcs.com/blog/end-of-year-market-wrap-forecast
Five Ways 2025 Deals Will Be Even Better For Tenants
With a new year on the horizon, businesses are poised to negotiate even better deals.
领英推荐
Here's why 2025 will bring more reasons for tenants to celebrate:
Read the full article here: https://www.tenantcs.com/blog/deals-improving-in-tenants-market
Happy Holidays from the Tenant CS team
As 2024 winds down, we’re proud to reflect on another great year at Tenant CS. Our team worked on projects in over 50 locations across Australia, saving our clients a combined $42.5 million (including additional savings like reduced face rents and minimised make-good obligations).
Within the Tenant CS family, we celebrated our Melbourne office’s 5th birthday, welcomed seven new faces, and sent out over 100 briefs on behalf of our clients.?
We couldn’t have achieved any of this without our amazing partners and clients. Your support, collaboration, and trust continue to be the foundation of everything we do.
We hope you have a wonderful festive season and a chance to recharge with family and friends.
Our office will be closed from Friday, December 20, through Monday, January 6. But we look forward to hitting the ground running with you in 2025!
Cheers,
The Tenant CS team ?? ????