Thursday 3 August 2023
Sydney CBD office market leads Australia on future supply, but vacancy increases highlight need for leadership
New data showing subdued office space demand in Sydney indicates the CBD’s strong contribution to the national economy cannot continue to be taken for granted.
Property Council’s NSW Executive Director Katie Stevenson said the July 2023 edition of the Office Market Report, released twice a year by the Property Council, reflected a resilient Sydney market with the pipeline of new stock set to hit the market in 2023 and 2024.
“The office vacancy rate has had a slight increase from 11.3 per cent to 11.5 per cent – a strong indicator in a challenging market that people still see face-to-face work as essential,” Ms Stevenson said.
“Businesses realise that to attract and retain talent they need to provide an option for employees to come together to form those collaborative and social connections that create high-performing teams,” she said.
Ms Stevenson said sustaining the Sydney CBD’s pivotal role as the engine room behind the Australian economy requires ongoing investment in the CBD and improved cooperation between the government and the private sector.
“These results demonstrate challenges around demand across the Sydney CBD and are reflective of the need to ensure we don’t become complacent,” Ms Stevenson said.
“This is a critical time to re-commit to our CBDs, so the recent decision by the federal government to remove caps on work from home days for government employees is concerning, and potential impacts on the Sydney CBD will be monitored by the Property Council,” she said.
Media contact: Anita Hugo | 0439 253 710 | [email protected]