Sydney CBD Office Market Vacancy Now To 2027: Net Absorption
In previous posts about office and redundancy (The office isn’t dead but how redundant is it?), we highlighted that real positive net absorption (not enquiry demand) in the Sydney CBD has been slowly decreasing for decades.
However, absorption always jumps when vacancy is high, and the incentives are at generous levels – today and the foreseeable future. But not to its historical heights as we are facing more uncertain times.
As a result, we see absorption this year (2023) of around +1%. Assuming all continues to stabilise, we see it rising to +2% per annum for 2023 and 2024 as a direct consequence of the incentive driven market and corporates continuing to stabilise after covid.
For 2025-2026 we think it will taper back to an average of +1% per annum.