Sublets on the Rise

Businesses are becoming more creative in maximizing office spaces. According to CB Richard Ellis (CBRE), large buildings are subletting the smaller floors in an effort to earn more money.

Subletting is also a way of building operators to cope with landlords who refuse to get more office spaces. According to CBRE director for office services Jenine Cranston, she is expecting that subletting trend would increase in the next few years.

Alex Wong, the leasing director of Jones Lang LaSalle, said smaller businesses can benefit from subletting. Because small businesses don’t usually have enough financial resources to rent big and premium spaces, subletting is a way for them to have access to A-grade spaces in the central business district.

Wong added that this trend has been observed in the last 12 months or so. Subletting also allows smaller firms to be located closer to their clients.

It appears that the most sought-after spaces are in Sydney. These include 1 Bligh Street, 420 George Street and 20 Bond Street. Over the last year, several businesses like Lexis Nexis and Hannover Re have taken office in these buildings.

Recruitment firm Salt & Shein has also sublet a 127-square meter office space in 20 Bond Street. According to Jones Lang La Salle leasing executive Christopher Selman, 20 Bond Street is a great example of allowing tenants to rent small floor spaces.

Jones Lang LaSalle was the firm that negotiated for Salt & Shein’s sublet in 20 Bond Street.