Lendlease has completed subleases at Barangaroo Tower 3 that amount to getting back about 45 per cent of its passing rent.
Office users open to short-term deals are locking in incentives worth 35 per cent in top Sydney towers, as the amount of CBD sublease space rises and corporate tenants cut their losses on underused space.
Lendlease recently subleased two floors at Baranagaroo Tower 3 as part of its tenant reduction strategy.Of these sublease availabilities, about 35 per cent were for leases that expire in 2024 or 2025.lots of office space available “In today’s market, depending on where the spice is located, incentives can be as high as 35 per cent or more. You’re already losing 35 per cent,” Mr Williams said. “Then you’ve got the time in which it takes to find that tenant, and you’ve got other costs associated with the transaction. So 50¢ on the dollar recovery is a good outcome.”Recent Lendlease subleasing deals at Barangaroo Tower Three provide a snapshot of how much of a discount subtenants are paying in the Sydney CBD.
Mr Williams said companies needed to be confident about what space they needed, flagging that some may be better off holding on to space to account for potential growth.
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