Why prime workspace is getting scarce - and how to find it

Looking for a new office? If so, you’re not alone. Five years since the pandemic upended how people work, many companies finally have enough clarity about their workplace needs to sign leases, and that’s sending demand for top-tier space soaring.

In major cities around the world, most space in premier office buildings is already leased up. This supply shortage will complicate your search, but a creative and proactive mindset can help you find the space you need for your business to thrive.

The office market is facing a supply-demand imbalance. Global office leasing volumes hit a five-year high in 2024 and showed continued strength in the first quarter of 2025, according to JLL research. 

A majority of tenants want space in trophy buildings, leaving the rest relegated to less desirable properties. This trend is driven by ESG requirements, including mandatory sustainability reporting like Australia's NABERS system, as well as organisations prioritising quality spaces with superior amenities to attract talent.

Although demand is high, fewer new office buildings are being built across major Australian markets. The national development pipeline shows 867,827 sqm currently under construction across 24 new projects and eight refurbishments to be completed by 2028. Each city faces unique challenges: Brisbane has paused several developments due to high construction costs and labour shortages, Melbourne shows limited development beyond current projects, and Perth's supply pipeline is constrained by debt costs with larger volumes only expected from 2028. Sydney CBD has a few key projects, but supply beyond these remains tight across the CBD.

A few trends make it unlikely that this imbalance will reverse soon:

• In-person work makes a comeback: Office attendance mandates are gaining traction globally, with employees spending an average of four days per week in the office. 

• Executives optimistic about business growth: About two-thirds (64%) of companies surveyed in our Global Future of Work survey expect their headcount to increase by 2030. 

• Flight-to-quality continues: Businesses increasingly seek well-located, top-tier workplaces to increase productivity, spark innovation and strengthen workplace culture. 

• Greater demand for finished space: Office build-out costs are rising across all regions, hitting a global average of $1,950 USD per square metre in 2025. That’s leading more companies to renew existing leases or seek move-in-ready space.
   

Competition for the best space will continue to intensify, requiring creative thinking and decisive action.

The supply shortage creates challenges for companies looking to lease new space immediately. If you don’t have nine to 12 months to wait for an ideal space to open up and build it out, these tips can give you an edge:
 

• Lean on relationships by working with a well-connected tenant representative to get the inside scoop on which spaces are becoming available before they hit the market.

• Think creatively, expanding your initial search parameters to consider up-and-coming submarkets or subleased space.

• Skip the traditional build-out and get your new office move-in ready using modular furniture that allows you to reconfigure spaces as you see what works for your workforce.

• Tap into integrated teams that combine workplace strategy, financial analysis, sustainability planning, and design expertise to speed up your transition while still achieving your workplace goals.

You may not be in a hurry to find new space if you still have a few years left on your lease, but the current supply shortage makes it critical to consider your options far in advance. You may need time to retrofit an older property or partner with a developer on a new build. While new developments could take up to five years, if the developer already has their approvals in place this could be faster—two to three years. Now is the time to affirm your workplace strategy and be proactive to secure the space you need to realise your vision.
 

• Use data to make informed decisions about how much and what kind of space you need. 

• Find ways to use space better such as multi-purpose spaces and desk-sharing arrangements that could allow you to shrink your real estate footprint.

• Consider new locations in emerging hot spots that offer convenient commutes, desirable neighbourhood amenities and lower rents than central business districts. 

• Define your future workplace experience with strategic conversations about how your space can help you achieve business and talent goals.

• Develop a risk mitigation plan that accounts for market shifts, construction delays, and changing workplace needs to protect your investment and maintain business continuity throughout your transition.

Don’t let the supply shortage prevent you from finding the workspace you need to support talent and grow your business. Partnering with an experienced tenant representative who has deep relationships across the local property market and knows your area inside and out will give you a competitive advantage. They can help you act quickly, navigate your options and negotiate effectively.

Learn more about our tenant representation services or read more about the future of smart workplaces to discover how to transform your office into a place where both people and business thrive.