Sydney CBD Office Market Q3 2023

October 12, 2023 6 Minute Read

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Key Points:


  • CBD leasing demand has remained steady, although transaction timelines continue to be drawn out. CBRE received 105 leasing enquiries totaling over 130,000 sqm in the third quarter.
  • No new office developments were completed over the first three quarters of 2023. Forecasts shows that only one new project will be delivered over the remainder of the year.
  • Sydney CBD continued to see strong face rental rate growth in Q3 2023, although increases to incentives have accelerated. CBD Core Prime net face rental rates reached 1,405 AUD/sqm in Q3 2023, growth of 1.4% quarter-over-quarter.
  • Sydney CBD office sales continued to improve gradually in Q3 2023. The quarter saw transaction volumes of AUD 716.5 million over the period.
  • Cap rates continued to increase in the second quarter, rising by between 25 bps and 100 bps depending on building grade and precinct.