Sydney CBD Office Figures Q2 2025

Key Points: 

• CBRE received 96 leasing enquiries totalling 110,930 sqm in Q2 2025. These figures were slight improvements over Q1 2025 but broadly in line with totals recorded over last 18 months.
• The Sydney CBD saw the delivery of 72,599 sqm of office space in H1 2025. Office development is set to slow going forward and new supply is forecast to total only 28,300 sqm over the second half of the year.
• The overall CBD vacancy rate ended H1 2025 at 13.7%, an increase of 90 bps from the start of 2025. Increases were due largely to the delivery of new supply and old stock withdrawals being re-added to market inventory.
• Leasing demand and rental rate growth showed signs of balancing out in Q2 2025. Prime properties in the Core and Walsh Bay precincts have continued to outperform, but there are now signs that leasing appetite is improving in the Western Corridor and Midtown precincts.
• Office investment activity has slowed over H1 2025. Cap rates remained unchanged across the CBD over the quarter.