Office market overview Q1, 2020
Trends for the Sydney CBD show a strong market, with low vacancy rates, high demand and increasing net face rentals all contributing to a challenging environment for tenants.
The market for premium grade space is especially strong, with net face rentals and demand both increasing and looking set to continue in this vein. Secondary grade properties are in a strong position too with continued low vacancy rates, but have seen a reduction in demand over recent months despite high withdrawals. Nonetheless, with Sydney’s CBD home to both the strongest jobs market in the country, and some of the most desirable office locations, we predict the growth in this market to continue for the medium term at least, and to easily absorb the 300,000+sqm of new space that will enter the market in the next three years.
A more detailed breakdown of the three major trends – rentals, incentives, and vacancy rates – along with a future forecast follows.