New data from JLL has found 80 per cent of tenancy briefs brought to the Sydney office market since the beginning of COVID-19 have been requesting fitted out spaces.

Offices that offer a completed fit-out can allow prospective tenants the opportunity to move quickly and easily, which can be a major benefit for a business, particularly if they are operating on shorter lead times, unable to renew in their current premises, and managing change within their business. 

At a glance: 

• Research from JLL has found 80 per cent of tenancy briefs brought to the Sydney office market since the beginning of COVID-19 have been requesting fitted out spaces.
• JLL negotiated a five-year lease that commenced in July 2020 for investment management firm Neuberger Berman for a 142 sqm space at 9 Castlereagh Street, Sydney. 
• JLL has forecast more fitted offices offered to the Sydney market in the short to medium term.

JLL’s Office Leasing Executive (NSW) Steane Davies said while demand for premises with fit-outs in place had typically been prevalent in tenancy groups seeking space below 500sqm, there was now demand across larger tenancy groups that were seeking more than 1000 sqm of space. 

“Tenants are noticing the benefits of existing fit-outs or brand new speculative fit-outs built by the landlord," he said.

"The approach from landlords fitting out spaces gives companies more flexibility, particularly for those who are looking to reduce costs and eliminate the time it takes to fit out and design the office space.

9 Castlereagh Street, Sydney. Source: JLL

“In the short to medium term, we expect to see more fitted offices offered to the market which will make it easier for tenants to consider relocating.

"Newly fitted space allows the opportunity for tenants to visualise what they are getting, which often helps provide the tenant with increased confidence in making their relocation decision."

JLL negotiated a five-year lease that commenced in July 2020 for investment management firm Neuberger Berman for a 142 sqm space at 9 Castlereagh Street, Sydney.

Charter Hall, as the landlord, marketed the premises with a speculative fit-out offering, which was delivered as a part of the leasing deal and differentiated the building from the alternate locations.

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