Sydney CBD Office Figures Q1 2024

Key Points:

• CBRE received 126 leasing enquiries totaling 120,595 sqm in Q1 2024. This marked a quarter-over-quarter increase of 113.8% by volume. Enquiry volumes over the first quarter were nearly level with the total recorded in Q1 2023, falling short by only 5.3%.
• While no new office supply was delivered over Q1 2024, three new office developments totalling 153,000 sqm will be completed over the remainder of the year.
• Despite continued growth in face rental rates, increases to incentives in several precincts resulted in average net effective rental rates remaining relatively flat in Q1 2024.
• Investment activity remained muted in Q1 2024. Transaction volumes totalled AUD 473.6 million over the period. The bulk of this transaction activity was comprised of the sale of a 50% stake in 255 George Street for AUD 363.8 million
• Cap rates held stable in Q1 2024, the first time since Q3 2022 that yields did not increase.