Sydney CBD Vacancy Steady as Tenants Chase Quality
Sydney’s CBD vacancy is steady at 13.5%, and demand remains focused on premium buildings in core locations.
Flight to quality continues to shape the market
The flight to quality trend remains the dominant theme in 2O26. Demand is concentrated in core locations, where prime vacancy is lower than secondary stock. Many occupiers are taking less space overall, but upgrading to higher-quality buildings that support attendance and attract staff.
Still a tenant’s market – but only if you know how to play it
High vacancy and strong incentives mean it’s a tenant’s market – but the best deals still go to the best-prepared tenants. Without expert guidance, it’s easy to miss hidden costs or leave value on the table. An independent tenant representative ensures you get the full benefit of market conditions and make informed, strategic choices.
New office supply to slow in 2O26
The supply of new CBD office space is well below average. Major projects to be completed in 2O26–2O27 include 2 Chifley Square, 37-55 Pitt Street and 8-1O Lee Street. However, over 5O% of space is already pre-committed. This constrained pipeline, paired with strong tenant demand for quality buildings, is expected to keep premium space competitive in the near term.
Spec fit-outs: Do they fit you?
Many landlords are providing speculative fit-outs, from suites to whole floors, to attract tenants into vacant space. Over the past few years, we’ve guided many clients on spec fit-outs. The big question is always: “Is this fit-out fit right your company’s needs?” Often, we’ll identify potential deal-breakers that would otherwise go unnoticed.
Vacancy rates
Sydney CBD – 13.5%
North Sydney – 21.5%
Macquarie Park – 22%
Chatswood – 20%
Crows Nest/St Leonards – 29.5%
Parramatta – 22%
