The Property Council of Australia's Office Market Report for January 2021 has revealed that the office market vacancy remains below ten per cent in the tightly held Sydney CBD office market, despite the impacts of COVID during 2020.
Sydney CBD vacancy increased from 5.6 per cent to 8.6 percent over the six months to January 2021. The CBD received almost 110,00sqm of new supply and negative net absorption of -54,671sqm, bumping the vacancy rate up to its highest level in seven years.
"Sydney CBD's office market continues to see a tightly held office market, with vacancy rates remaining comfortably below ten percent," NSW Executive Director Jane Fitzgerald said today.
Positive demand for space was felt in metropolitan markets outside of the CBD, with Paramatta, Crows Nest/St Leonards and Wollongong all recording relatively strong positive demand.
The tightly held historical position of the CBD has supported the city to weather the storm that COVID 19 has had on the office market. As the country and workforce readjusts to a new normal through 2021 and 2022, the Sydney CBD office market remains a standout place to conduct business.
"Sydney has close to 280,000 sqm of office space coming online over the next two years, so it is an ideal time to secure prime office space for considered future tenants.
"We support the statements by the Premier and Treasurer of NSW highlighting that the CBDs are the engine room of the NSW economy and continued support from employers to encourage people back to the cities is more important now than ever," Ms Fitzgerald said.
"Infrastructure delivery needs to remain a priority for government to deliver and must be backed up with the appropriate planning reform to allow for delivery of a globally competitive city."
Office vacancies are calculated on whether a lease is in place for office space, not whether the tenant's employees are occupying the space or working from home.
