The Sydney we know and love is slowly making a strong return. The trains and busses are fuller, even the trams appear in regular use, fans are piling into the Sydney Cricket Ground for sporting events and we can finally dance at venues. However, not everything is completely back to normal. Businesses are still falling behind on their rents and looking to restructure or exit their lease. The city is and will be grappling with the effects of COVID-19 for some time.
Portions of the city are making decisions around ‘space’, whether they are renewing an existing lease or looking for improved spaces for employees to return to. They know that the Sydney CBD vacancy rate is still double the norm at approximately 9%, and there remains 170,000sqm of sublease space, many with stylish and new fitouts. Amid concern about remote work as a long term strategy, many have acknowledged that returning to work, even in a hybrid capacity, is critical for human connection, productivity and employee morale, therefore, wanting to get the best possible deal before full recovery is upon us.
However, in other parts of Sydney, we see a city where businesses across all industries are still reeling from the effects of the pandemic and doing their best to survive. Since as early as March 2020, we have been working with clients to terminate leases, negotiate rent relief or sublease their spaces. Though Sydney seems to be in a stable state of recovery, the pandemic has damaged many businesses for the foreseeable future and decision makers are left with unused or un-affordable space in its wake.
No matter what position your business finds itself in, we're here to help guide you in the weeks and months ahead by candidly sharing what we're seeing to ensure you arrive at a place where you can make the right strategic decisions for you and your business.
Please reach out to me at [email protected] or (02) 8006 0734 if you have any specific questions or would like to discuss how wecan help with your particular real estate needs.
Mike Franklin
Franklin Shanks