NSW Government saves $80 million on Sydney CBD leases

Over the past five years, "strategic leasing initiatives" have saved taxpayers an estimated $80 million on office rental costs in the Sydney CBD.

Property NSW CEO, Brett Newman, said effective management of the portfolio, a combination of moving from premium buildings and negotiating below-benchmark new deals on CBD office space, had delivered savings for the Government.

“Prime Gross Effective office rents in Sydney’s CBD have increased by more than 55 per cent in the last three years and are forecast to increase significantly over the next three years amid constrained supply,” Mr Newman said 

The Government's plan has involved moving out of premium buildings and into A Grade buildings as well as increasing its presence in the Southern CBD.

Mr Newman said the Government has moved from paying around 15 per cent above the Prime Industry Benchmark in 2014 to more than 30 per cent below in 2018."

The NSW Government is the State’s largest tenant, occupying more than one million square metres of office space across metropolitan and regional NSW.

Property NSW is has made progress on reducing CBD office space by a goal of 100,000 sqm by 2021.

It has made a reduction of more than 70,000 sqm to date.