JLL analysis indicates tenants remain focused on larger, higher quality office space
News release
29 March 2024
Tenant demand in Sydney CBD reaches three year high
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SYDNEY, 30 April 2024 – JLL's analysis for January and February 2024 indicates a continuation of last year's positive trend in office leasing, pointing to an improving Sydney CBD office market.
The first two months of 2024 have seen the highest number of formal tenant briefs in the market since the same period three years prior.
JLL recorded 73 briefs accounting for approximately 65,000 square metres of space, in January and February, in line with pre-pandemic activity.
In January, JLL recorded 32 formal tenant briefs, a 33% increase from the prior year. February continued this growth trend with an 86% rise in tenant briefs compared to the corresponding month in 2023, and a substantial 41% over 2022 figures.
The total square metre requirement almost doubled, indicating tenants looking for larger space.
Tenants who came to market in January are currently seeking approximately 26,000 sqm of space to occupy. The demand continues into February, estimated at a further 37,000 sqm, notably exceeding the previous year’s demand.
JLL’s Head of NSW Office Leasing, Will Hamilton said, "The early 2024 figures represent a robust commercial sector in Sydney, with significant increases in both the number of briefs and the amount of space required.
“We're seeing a 59% rise in briefs and a 93% increase in space sought compared to last year. Tenants are prioritising prime grade spaces that align with sustainability and amenity needs, continuing the trends we've observed since the pandemic,” said Hamilton.
Over 55% of briefs required fitted space, and only 11% having a strict preference for refurbished space.
“The current market response, including the significant commitment levels for upcoming supply, is a sign of sustainable demand and the market's alignment with a quality-focused business environment,” said Hamilton.
JLL projects the completion of over 180,000 sqm of new office space in 2024, with almost 80% of this committed prior to completion.
This data points to a positive direction for the Sydney office leasing market, with ongoing demand for high-quality office venues.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 108,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.