Professional Services has overtaken Finance and Insurance as Sydney's top employer, according to CBRE's recent review of the city's office leasing market.

Spurred by the city’s infrastructure boom and continued growth of the tech sector, professional services firms, technology and IT tenants have taken a larger portion of office space, with the change of market conditions leading to a demand for shorter leases and greater workplace flexibility. 

At a glance:

• CBRE has conducted a review of Sydney's office leasing market, revealing that Professional Services has overtaken Finance and Insurance as the city's top employer.
• Co-working and serviced office providers currently occupy approximately 156,000sqm - around 3 per cent of stock – with a significant take-up in the last 12 months as they look to accommodate the requirements of the changing workplace.
• According to CBRE, enterprise agreements with co-working providers are gaining momentum, with larger corporations leasing up to three hundred seats at a time on short-term agreements.

CBRE Head of Capital Markets, Office and BTR Reseach, Ben Martin-Henry, said the review also highlighted a significant increase in agile and co-working space to meet the market’s changing requirements – both in Sydney and on a national basis.  

“Agile space take-up accounted for 17 per cent of national net absorption in 2018, which is further evidence that the sector is becoming more mainstream as tenants are increasingly looking for more flexible options,” he said.

“Co-working and serviced office providers currently occupy approximately 156,000sqm - around 3 per cent of stock – with a significant take-up in the last 12 months as they look to accommodate the requirements of the changing workplace.”

Chris Fisher, CBRE Director of Advisory & Transaction Services, Office Leasing said that Sydney had traditionally relied on the Finance and Insurance industries, but the market was experiencing a clear shift in both the make-up of occupiers and their office space needs. 

“Enterprise agreements with co-working providers are gaining momentum, with larger corporations leasing up to three hundred seats at a time on short-term agreements,” he said.

“Flexibility is a key consideration for corporations and one size does not fit all. Landlords increasingly need to understand tenant drivers and adopt flexibility to remain competitive.”

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