Colliers International has negotiated a sub-lease of 1,100sq m of warehouse facility at 30 Hinde Street, Southport, plus 280sq m basement space to Carselling.com.au for a two year period, to October 2013.

Joshua Wright, Colliers International Industrial Executive, negotiated the sub-lease of the property, which was been tenanted by Motor One Group Pty Ltd, on behalf of Bramley Properties Pty Ltd.

Scott Dean, Director of carselling.com.au, a company which sells cars and scooters over the internet and directly to wholesalers, said obtaining a lease over the property allows them to reduce their insurance as they no longer have to store any cars outside.

"Our new premises is totally undercover and now houses our Racing Development, Used Cars and Service department under one roof," he said.

"Reducing our hail damage insurance will allow us to provide substantial savings to our customers." Mr Wright said sub-leases are becoming very common in the current market.

"Many companies are still restructuring and this often leaves space vacant - in some cases it is simply cheaper for companies to close down an outlet and continue paying rent rather than continue operating with the other expenses," he said.

"We would expect this trend continue in the short term."

"In cases where potential tenants are not comfortable with the idea of a sub-lease, incoming tenants can negotiate directly with the landlord," Mr Wright said.

"There is always the inherent risk with a sub-lease that the head lessee may go under. In this case the sub-tenant could be left to try and renegotiate with the landlord to stay in the property."

Mr Wright said in the case of a sub-lease the rental needs to be around what the current tenant is paying otherwise the landlord would be better off just receiving money from the current tenant.

Carselling.com.au will have the Trading Post V8 Supercar on display at their new Hinde Street premises from the 12th to the 20th of October 2010.

MEDIA CONTACT: Susan Epp Susan.Epp@colliers.com +61 7 3026 3322