Sydney CBD Office Figures Q1 2025

Key Points:

• Leasing demand remained steady across the Sydney CBD over the first quarter of 2025. Enquiry volumes were largely in line with activity recorded in Q1 2024.
• While the Sydney CBD saw the delivery of 164,552 sqm of office space in 2024, development is set to slow going forward. New supply is forecast to total only 72,600 sqm in 2025 with the bulk of deliveries being from refurbishments.
• The overall CBD vacancy rate ended 2024 at 12.8%. Given stable leasing enquiry levels, a lack of forecasted new supply, and the ongoing flight-to-quality by occupiers, it’s expected that CBD vacancy rates are now at their peak for this cycle.
• Rental rates and incentives continued to bifurcate in Q1 2025. Prime properties in the Core and Walsh Bay precincts have continued to outperform, whereas leasing appetite in other precincts remains moderate.
• Office investment volumes in the CBD reached AUD 726.6 million in Q1 2025. Cap rates remained stable over the quarter.