Sydney CBD Office Market Vacancy Now To End 2026

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Sydney CBD Office Market Vacancy Now To End 2026

In October 2021, we started our long-term forecasts for the Sydney CBD office market but at that time we were in lockdown and certainty was far from certain.

In April this year we found certainty returning and restarted the forecasts. The time frame was roughly 5 years, to January 2027.

Starting today, we share our forecasts in a series of short posts.

We explored the 4 main components of office vacancy – withdrawals (stock taken off the market – reduces vacancy), additions (stock added to the market – increases vacancy), net absorption (occupied space from one period to the next – impacts vacancy negatively or positively), and our new component, structural demand (the effects of technology, covid, and the next ways of working on the real use of office space).

The baseline is Property Council of Australia (PCA) data (the most familiar). In January 2022, the Sydney CBD office market was approximately 5,200,000 m2, and vacancy was at 9.3%.

We have rounded the figures for simplicity – 1% is about 50,000 m2.

Please note, the views expressed in this series are our own and based on over 35 years of being immersed in this market and countless discussions with market participants.

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