New data released today in the Property Council of Australia's Office Market Report shows vacancy in the Sydney CBD has ticked up slightly from 12.8 to 13.7 per cent, but the city's premium office towers are filling fast.
Property Council NSW Executive Director Katie Stevenson said more companies are choosing a base in the Sydney CBD rather than in suburban areas.
"Big name companies want premium space - they're moving into modern, well-connected CBD towers with better amenity, sustainability and access to talent," she said.
More than 72,600 square metres of new office space hit the Sydney market in the past six months, including 33 Alfred St, 121 Castlereagh St and 1 Shelley St, with premium-grade offices in strong demand.
However, the data shows several non-CBD areas feeling the pinch, with Macquarie Park and Chatswood seeing vacancy rising sharply, and North Sydney steady but also under pressure, with office vacancy sitting at 21.7 per cent.
"Businesses and workers want modern, energy-efficient offices with great design and flexible fit-outs that are easier to get to," Ms Stevenson said.
"Metro and light rail are making the CBD easier than ever to get to, while many suburban precincts still rely on car travel - it's changing where people want to work.
"Companies are also using less space but making it count, trading multiple sites for one high-performance, centrally located office."
Ms Stevenson said short-term supply was easing, with Atlassian Central due next year and 2 Chifley in 2027.
"The pause in supply will give the market room to breathe and provide a chance for demand to catch up and restore balance after a wave of completions," Ms Stevenson said.
The findings were unpacked today at the NSW Mid-Year Office Market Report event in Sydney, featuring speakers from Insignia Financial, CBRE, Knight Frank, Deloitte and GPT.
