Commercial property in our major cities continues to experience high vacancy rates. In Sydney, the figure is 14%, and in Melbourne, 16.2%, according to JLL. Businesses continue to vacate their space or downsize, as more employees opt to work from home… and a number of these organisations are large tenants.
Many companies are attempting to bring employees back into the office, with mixed results. While a number of people expected that work styles would revert to pre-covid arrangements, it looks as though work-from-home is here to stay. Therefore, landlords must adapt to this situation, and create more enticing offerings for tenants, and ultimately the employees.
Who is vacating?
According to this article by the Australian Financial Review, there are a number of big companies vacating office space in Sydney.
Commonwealth Bank is reportedly vacating its offices at Darling Park Tower One, later on this year. This could leave that particular office tower with more than 30,000m2 of vacant space. Meanwhile, Westpac will be exiting 9 floors of space at Kent Street, while KPMG and LendLease are also giving up floors at Barangaroo Tower 3.
Whether it’s cost-cutting or downsizing due to flexibility (that’s here to stay), there is plenty of office space available in the Sydney CBD.
What can office towers do?
The short answer is to adapt by offering workspaces that cater to modern working requirements. Flexibility is the most important word here… because offices are changing, and towers in Sydney must facilitate this change for tenants. Different types of workspaces, and high-quality, sustainable office fitouts are a must.
Looking for new Sydney commercial space?
There’s no better time than now. The bevy of empty office space in Sydney means there are fantastic opportunities for growing businesses. At Niche Tenant Advisory, we’re here to help you locate the best space for your company. We’ll negotiate hard on your behalf so that you get the best deal available, with terms that suit your needs.
Get in touch with us today for quality Sydney commercial property advice.