Sydney CBD Office Figures Q3 2025

Key Points:

• CBRE received 96 leasing enquiries totalling 122,920 sqm in Q3 2025. This was a 10.8% improvement over Q2 2025 and the largest quarterly enquiry total since 2023.
• The Sydney CBD saw the delivery of 72,599 sqm of office space in H1 2025. Office development is set to slow going forward.
• 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.
• Increased demand for office space across the CBD has started to drive rental rate growth and incentive tightening across the market. Q3 2025 marked the first quarter in several years that incentive tightening and effective rent growth was recorded in the Core, Walsh Bat, Midtown, and Western Corridor precincts.
• Investment activity remained muted over Q3 2025 due to a lack of available product. Given strong demand for high quality assets, cap rates have started to tighten in certain precincts.