Colliers Industrial & Logistics experts witness a surge in flexible solutions driven by evolving market conditions and diverse business needs.
As market conditions evolve trends shift in response influencing the growing need for businesses to adapt and change in order to keep up. Colliers Industrial & Logistics experts Jonathan Mercuri, Director and Steph Archer, Executive are witnessing this across Melbourne’s East market.
“We are increasingly witnessing businesses seeking flexibility in their real estate commitments, resulting in a rise in the number of sub-leases and lease re-assignments in the Melbourne East market,” mentioned Mr Mercuri.
This trend is gaining traction, driven by factors such as fluctuating workforce needs, tenants are reassessing their space due to costs of production, impacts of the economy, tenant requirement shifts, unexpected expansion resulting in outgrowing spaces and many more influences. The reasons are diverse, necessitating unique solutions for each business.
“The shifts across the market have made it more common to see businesses coming to us to leverage our market knowledge, track record and to discuss strategies to adjust their current leases through re-assignments and subleases,” said Ms Archer.
Recently, the Colliers Industrial & Logistics Melbourne East team has assisted four occupiers in this space, transacting a total of 20,344sqm in sub-leases and re-assignments. Clayton, Knoxfield, and Croydon South are among some of the Melbourne East suburbs where the team has observed this trend.
“Across these key transactions we have witnessed an average rental up-lift for landlords of 12% and an average lease term secured of six years,” said Mr Mercuri.
Ms Archer added, “These transactions are delivering maximised results, and we are continuing to work closely with other occupiers in the market to deliver effective and efficient solutions when it comes to their unique business and property needs.”
The four transactions the team carried out have each been influenced by changing business needs. As a result, the team have had to tailor and adjust solutions to address the unique requirements of each asset.
These transactions illustrate the growing trend and the need for businesses to be able to leverage the expertise and quick thinking of agency experts to ensure maximised results are delivered with little down time.
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