How to Stay Competitive in the Australian Office Market with Laurence Hart
In this episode of the Market Lens podcast, Tom Wallace, CEO of Re-Leased, and Laurence Hart, National Head of Property Lending at Macquarie Business Banking, discuss the declining length of office leases in Australia and its impact on the market. They explore the factors behind this trend, including the rise of flexible workspaces and the influence of macroeconomic conditions. Landlords are responding by offering shorter lease terms, which can lead to stable cash flow and reduced tenant turnover. Sustainability is also playing a role, with longer leases aligning with environmental commitments. Key highlights from the episode:The average office lease in Australia has decreased by almost 30% since 2019.Understanding the factors, both big and small, that are driving the rise in short-term leases.There's still demand for longer leases from occupiers but these buildings must align with sustainability goals and commitments to reduce carbon emissions.See more data analysis from Market Lens here.