Flexibility is key in Sydney’s evolving office leasing market: CBRE

A shift in Sydney’s white-collar employment mix is driving demand for shorter-term leases and more flexible workspaces, according to recent findings from CBRE.

This is a key finding of CBRE’s recent review of the Sydney office leasing market, which highlights that Professional Services has overtaken Finance and Insurance as the city’s top employer. 

The review also highlights a significant increase in agile and co-working space to meet the market’s changing requirements – both in Sydney and on a national basis. 

CBRE’s Head of Capital Markets, Office and BTR Research, Ben Martin-Henry said, “agile space take-up accounted for 17% of national net absorption in 2018, which is further evidence that the sector is becoming more mainstream as tenants are increasingly looking for more flexible options"

“Co-working and serviced office providers currently occupy approximately 156,000sqm - around 3% of stock – with a significant take-up in the last 12 months as they look to accommodate the requirements of the changing workplace,” he added. 

Chris Fisher, CBRE Director of Advisory & Transaction Services, Office Leasing said that Sydney had traditionally relied on the Finance and Insurance industries, but the market was experiencing a clear shift in both the make-up of occupiers and their office space needs.  

“Enterprise agreements with co-working providers are gaining momentum, with larger corporations leasing up to three hundred seats at a time on short-term agreements"

“Flexibility is a key consideration for corporations and one size does not fit all. Landlords increasingly need to understand tenant drivers and adopt flexibility to remain competitive,” Mr Fisher concluded