Is sublease space cheap in Perth?

Sublease typically trades 15–30% below direct asks for equivalent specification. The total economics depend on remaining term, TI condition, and the assignment/sublet provisions in the prime lease.

Can I convert a sublease to a direct lease in Perth?

Sometimes. On longer-horizon takes, ask the landlord to write a fresh direct lease at sublease commencement — they get a creditworthy long-term tenant; you get rent-free and TI.

Sublease availability in Perth is concentrated in older Class B and lower-tier Class A stock; trophy assets like Perth CBD / St Georges Terrace clear quickly even when the broader market shows 14.6% vacancy.

Direct vacancy is 14.6%; sublease overhang is concentrated outside the trophy tier.
Sublease space typically prices 15–30% below direct asks for equivalent specification.
Term-take risk and limited TI are the two biggest sublease tradeoffs.
Trophy submarket (Perth CBD / St Georges Terrace) has the thinnest sublease overhang.

Perth Class A sublease market

sublease">Sublease availability in Perth is concentrated in older Class B and lower-tier Class A stock; trophy assets like Perth CBD / St Georges Terrace clear quickly even when the broader market shows 14.6% vacancy.

TL;DR

Direct vacancy is 14.6%; sublease overhang is concentrated outside the trophy tier.
Sublease space typically prices 15–30% below direct asks for equivalent specification.
Term-take risk and limited TI are the two biggest sublease tradeoffs.
Trophy submarket (Perth CBD / St Georges Terrace) has the thinnest sublease overhang.

Where the sublease overhang sits

In Perth, sublease availability concentrates in the older Class A and Class B segments — not in trophy product. Vacancy across the broad Class A index is 14.6%; the trophy tier in Perth CBD / St Georges Terrace is structurally tighter.

What you give up

Subleases trade at a discount, but you inherit the prime tenant's term, get limited or no TI, and live with whatever fit-out">fit-out exists. For occupiers under a 24-month horizon, that tradeoff usually wins. For multi-year HQs, direct deals with rent-free and TI almost always produce better effective economics.

Negotiating points

Look for direct deals with the landlord at sublease commencement (a "bypass" structure) — landlords will sometimes write a fresh long-term lease to take a problem space off the prime tenant's books. Australian gross structure (rent inclusive of outgoings up to a base year). 5-10 year terms standard with options. Rent-free of 8-14 months on 7-year terms plus AUD 1000-2000/sqm TI typical.

Key facts

city	Perth
country	Australia
region	APAC
classARentLocal	660 AUD/sqft/yr
classARentUsd	$440/sqft/yr
vacancy	14.6%
typicalLeaseYears	7
typicalRentFreeMonths	12
submarkets	5
primeYieldPct	6%

Frequently asked questions

Is sublease space cheap in Perth?: Sublease typically trades 15–30% below direct asks for equivalent specification. The total economics depend on remaining term, TI condition, and the assignment/sublet provisions in the prime lease.
Can I convert a sublease to a direct lease in Perth?: Sometimes. On longer-horizon takes, ask the landlord to write a fresh direct lease at sublease commencement — they get a creditworthy long-term tenant; you get rent-free and TI.

Editorial provenance

Reviewed by Class A Atlas Editorial Desk — House byline · global editorial team. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

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