Sydney CBD Office Figures Q4 2023

·       CBRE received 78 leasing enquiries totaling 56,500 sqm in Q4 2023. Given subdued demand, the only precincts to see positive net absorption over 2023 were the Core and The Rocks.

·       Minimal new office supply was delivered over 2023. Supply will resume in 2024 when it’s expected that 203,000 sqm of new supply will be delivered.

·       Sydney CBD vacancy rates increased to 12.2% as of year-end 2023. The flight-to-core by occupiers has led to tighter conditions in the Core precinct than elsewhere throughout the CBD.

·       Despite continued growth in face rental rates, increases to incentives in several precincts resulted in average net effective rental rates remaining relatively flat in Q4 2023.

·       Investment activity remained muted in Q4 2023. Transaction volumes totalled AUD 796.3 million over the period, while the Prime indicative yield increased to 5.9%.