From the AFR:
Plunging commodity prices and losses from the world’s biggest miners have shaken the foundations of Australia’s office towers with thousands of square metres of space coming on to the market.
…Advisers to the big miners such as Kernal director Steve Urwin say that while many of the big lease agreements are locked in for several years, the big plunges in commodity prices and the heavy losses weaken tenants’ appetite for office space and the broader market.
“It’s not just the big resources groups its all the those who advise them such as the big engineering firms like a Worley Parsons or Hatch – they all have leases as well,” Mr Urwin said.
…Tenant advisory Protego’s Giles Knapman said the shifting about of major miner’s requirements means more sublease – that situation when a tenant leases out to another.
“It does start to mean that there is a lot of sublease space dumped on the market and that can soften rents.”
Not just a Perth problem, either, Melbourne and Brisbane are also mining centres.
