Sydney's CBD office market is gaining momentum as declining availability of Prime office space fuels strong rental growth.
Key Highlights:
- Prime CBD office space available now or within the next 12 months fell by 11.0% Y/Y.
- Premium Grade availability declined by 18.4% Y/Y, taking availability to just 2.9% of total Prime NLA.
- Availability of A Grade space also declined in line with more limited Premium options.
- All CBD precincts recorded lower availability, signalling a broadening in tenant demand.
- Tightening leasing marketing conditions and rising fit out costs are driving strong rental growth.