Sydney CBD Office Figures Q4 2025

Key Points:

• CBRE received 315 leasing enquiries totaling 386,010 sqm in the Sydney CBD in 2025. This was a year-over-year decline of 5.8% by volume compared to 2024.
• The Sydney CBD saw the delivery of 32,865 sqm of office space in H2 2025. Office development is set to slow substantially going forward.
• The overall CBD vacancy rate ended H2 2025 at 13.8%, a slight increase of 7 bps from mid-year 2025. Increases were due largely to the delivery of new supply, as net absorption for the second half totalled 11,359 sqm. 
• Increased demand for office space outside of the Core has started to drive rental rate growth and incentive tightening across non-Core precincts. Each of the Core, Midtown, Walsh Bay, and Western Corridor precincts recorded NER growth over 5.0% in 2025.
• Full year office investment volumes totalled AUD 3.1 billion in 2025, a decline of 36% year-over-year. This slowdown in activity was more a function of a lack of opportunities for investors as opposed to a lack of interest. Demand for assets in the CBD remains strong.