Sydney Offices 2H/2024

FLIGHT TO QUALITY AND LOCATION

Like many global cities, the Sydney office market has been characterised by a strong flight to quality and location over the past couple of years. Occupier demand has been concentrated on centrally located and highquality office space as tenants attempt to entice their staff back to the office.

Availability trends, which vary by property grade, highlight the multispeed nature of the Sydney office market. According to the Savills Prime Full Floor Availability August 2024 report, the amount of Premium office space in the Central Business District (CBD) available now or within the next 12 months declined by 17.8% to c.131,800 sq m over the year to August 2024. By contrast, available A grade space increased by 9.4% over the same period to c.336,800 sq m. The Premium market remains tightly held, with availability at 3.4% of total prime net lettable area (NLA) in August, down from 4.2% a year ago, and considerably lower than the 8.7% for A grade.