Market
Pulse
Download the latest Market Pulse, our comprehensive office market report with in-depth analyses of the Sydney CBD and North Shore markets.
Market
Dashboard
A collection of data, charts and insights providing a succinct snapshot of the Sydney office leasing market.
Sydney
CBD
11.6%
Vacancy Rate
as at Jul-24
-69,258
Net Absorption
12 months to Jul-24
1.5%
Rental Growth
A Grade net effective, 12 months to Jun-24
33%-39%
Incentives
Indicative range, as at Jun-24
The arrows indicate the direction of Cadigal’s expected change over the next 12 months.
Vacancy
Rate
The overall vacancy rate in the Sydney CBD currently sits at 11.6%, having eased down from 12.2%, which was the market’s highest rate in 28 years.
The modest fall over H1 2024 follows nine consecutive rises, beginning in H2 2019.
Rents
The combined movement in face rents and incentives has resulted in effective rental growth of -3.3% to 8.1% for the year to Jun-24.
Similar to face rents, relative performance in effective rents across building grades saw Premium outperforming and B Grade showing a decline.
Tenant Demand
Net Absorption
Tenant demand in the Sydney CBD remains weak, with -4,630sqm of net absorption recorded over H1 2024, the fourth consecutive negative result.
Whilst still negative, the latest result is an improvement on both the -64,628sqm recorded over H2 2023 and the -40,173sqm in the prior period (H1 2023).
Supply Completions
2019-2028
No major office projects were completed over 2023 or the first half of 2024, with the last completion being the Poly Centre (210 George Street) in Q4 2022.
Tenant
Enquiry
The quantum of active tenant enquiry for the Sydney CBD fell substantially over Q2 2024, dropping 28% to 233,150sqm as at Jun-24.
Prior to the latest fall, total enquiry had recovered to about the long-term average over the previous three quarters.
Tenant Enquiry
by Industry Sector
A breakdown of total enquiry by tenant industry reveals three sectors, Financial Services, Information Media & Telecommunications and Public Administration & Safety together comprise more than half of the total.
North
Shore
23.5%
Vacancy Rate
North Sydney, as at Jul-24
-21,527
Net Absorption
North Shore, 12 months to Jul-24
4.7%
Rental Growth
North Sydney A Grade net effective, 12 months to Jul-24
33%-45%
Incentives
North Shore indicative range, as at Jun-24
The arrows indicate the direction of Cadigal’s expected change over the next 12 months.
Vacancy
Rate
The vacancy rate in North Sydney fell from a record high of 24.2% to 23.5% over H1 2024.
The drop was partially offset by rises in both Crows Nest/St Leonards (26.3% to 26.5%) and Chatswood (18.8% to 20.6%).
Rents
Effective rental growth across the North Shore has been mixed, with 12-month growth ranging from -15.1% to +7.7%.
North Sydney outperformed Crows Nest / St Leonards and Chatswood, whilst A Grade effective rents grew more than both Premium and B Grade.
Tenant Demand
Net Absorption
Positive net absorption of 2,873sqm was recorded in the North Shore over the 6 months to Jul-24, the first positive result in three and a half years (since H2 2020).
The market had endured four consecutive years of negative net absorption over 2020-2023, totalling -113,698sqm.
Supply Completions
2018-2027
There were no major supply additions or withdrawals across the North Shore, over the first half of 2024.
Victoria Cross Tower in North Sydney remains on-track for Q2 2025 completion, with no further significant supply expected until at least 2028.
Tenant
Enquiry
The quantum of active tenant enquiry across the North Shore fell 8% to 171,945sqm over the first half of 2024, but still remains above the average of the last seven years.
Tenant Enquiry
by Industry Sector
Breaking down the current North Shore enquiry by industry sector reveals Information Media and Telecommunications (IMT) as the most dominant, accounting for almost a third of the 171,945sqm total.
Only two other industries, Manufacturing and Financial Services account for more than 10% of the total.
