The Great Withdrawal Sydney CBD May 2025

Key Points: 

• Given sectoral challenges in the office sector globally, CBRE forecasts that stock withdrawals will be well above historical levels in most Australian markets going forward.  
• CBRE research has identified 241,336 sqm of office space within the Sydney CBD which may be withdrawn from the market. 
• This figure includes permanent, temporary, and potential stock withdrawals which are expected to take place over the next five years. 
• This period of anticipated withdrawals intersects with a period when new supply will also be very limited. 
• The elevate levels of withdrawals combined with a lack of new supply will have significant impacts on vacancy rates in the Sydney CBD.
• It’s also highly likely that challenges in non-Core leasing markets will drive additional withdrawals in the Sydney CBD over the coming years.