Market
Pulse
Download the latest Market Pulse, our comprehensive office market report with in-depth analyses of the Sydney CBD and North Shore markets.
Market
Dashboard
A collection of data, charts and insights providing a succinct snapshot of the Sydney office leasing market.
Sydney
CBD
13.7%
Vacancy Rate
as at Jul-25
56,532
Net Absorption
12 months to Jul-25
1.2%
Rental Growth
A Grade net effective, 12 months to Jun-25
32%-42%
Incentives
Indicative range, as at Jun-25
The arrows indicate the direction of Cadigal’s expected change over the next 12 months.
Vacancy
Rate
The vacancy rate continues to rise, increasing 0.9% over H1 2025, to 13.7%. As a result, the current vacancy rate is the highest in more than 30 years (since Jan-95).
Rents
Effective rental growth has been marginally lower than face rents due to incentives being slightly higher, in general, over the last 12 months.
Effective rents rose between 1.2% and 3.6%, led by Premium grade.
Tenant Demand
Net Absorption
10,298sqm of net absorption was recorded across the market over the first half of the year, leading to a 12-month total of 56,532sqm which is above the long-term annual average of 37,514sqm.
Supply Completions
2020-2029
There have been three major office projects completed in 2025 - 33 Alfred Street (31,247sqm), 121 Castlereagh Street (11,503sqm) and 270 Pitt Street (22,669sqm).
No more supply will complete in the CBD until Atlassian Central is delivered in Q4 2026, followed by Chifley South and 55 Pitt Street in 2027. After 2027, no new office supply is expected until 2030.
Tenant
Enquiry
The volume of active tenant enquiry continues to grow, with the 418,600sqm total the highest since Dec-14, albeit it includes Westpac’s super-sized 150,000sqm enquiry.
Tenant Enquiry
by Industry Sector
Half of the total enquiry is currently coming from Financial Services tenants (skewed by the Westpac enquiry), with Information Media, Telecommunications & Related Services and Education & Training rounding out the top three industries.
North
Shore
21.7%
Vacancy Rate
North Sydney, as at Jul-25
-20,250
Net Absorption
North Shore, 12 months to Jul-25
-2.1%
Rental Growth
North Sydney A Grade net effective, 12 months to Jun-25
34%-47%
Incentives
North Shore indicative range, as at Jun-25
The arrows indicate the direction of Cadigal’s expected change over the next 12 months.
Vacancy
Rate
The overall North Shore vacancy rate fell over H1 2025 as did the largest sub-market, North Sydney from 23.7% to 21.7%, its lowest level in 2.5 years.
However, the fall was entirely driven by the withdrawal of 105 Miller Street from stock, and not tenant demand.
Rents
The varied performance of effective rents continued across the North Shore, resulting in an even wider range for effective rental growth of -4.2% to +9.3% over the 12 months to Jun-25, again led by Premium.
Tenant Demand
Net Absorption
Negative net absorption (-9,276sqm) was recorded on the North Shore over H1 2025 and a significant turnaround is required in H2 2025 to avoid an unprecedented sixth consecutive year of negative net absorption.
Supply Completions
2020-2029
One major office project is currently under construction on the North Shore – Victoria Cross Tower in North Sydney (55,318sqm NLA, due Q4 2025).
No additional new supply can be delivered to the market until after end-2028, at the very earliest.
Tenant
Enquiry
The volume of active tenant enquiry for the North Shore jumped 45% over H1 2025 to the highest level since Jun-17.
The huge bounce-back in enquiry has led to considerable optimism, and expectation, that net absorption will similarly improve.
Tenant Enquiry
by Industry Sector
Information Media, Telecommunications & Related Services tenants are dominating current enquiry with almost a third of the total, whilst Manufacturing and Financial Services are the only other industries contributing 10% or more.
