Little guys have big impact in office leasing market

Many Perth offices are being speculatively fitted out in the hope of securing new tenants.

Small businesses have done most of the heavy lifting in Australia’s office leasing market through the first nine months of the year.

With the major capital city markets enjoying a 21% surge in the amount of office spaced leased in the year to date, a Colliers International report reveals 85% of that space has been taken up by businesses requiring less than 1000sqm.

According to Colliers’ Office Demand Index, more than 448,000sqm of space was leased nationally by the end of September.

A growing number of small businesses are looking to establish their headquarters in Australia’s two major markets, with the IT industry leading the way

Colliers International managing director of office leasing Simon Hunt says small businesses have been increasingly active in seeking new space, particularly in Melbourne and Sydney.

“Year to date, the Sydney and Melbourne markets have seen heightened activity for small businesses,” Hunt says.

“A growing number of small businesses are looking to establish their headquarters in Australia’s two major markets, with the IT industry leading the way.”

The number of enquiries from groups seeking space has also grown 8% on last year, according to the report.