In this episode of the Market Lens Podcast, Tom Wallace, CEO of Re-Leased, and Andrew Knight, Global Data & Tech Lead at RICS, look at how some commercial landlords are adopting innovative approaches to ensure demand for spaces while others are being left behind. They also discuss the impact of shortening lease lengths in the UK office sector on valuations and how to approach adaptive reuse. 

See more data analysis from Market Lens here.

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.