31
May
Sydney CBD Office Market Vacancy Now to 2027: Withdrawals
31 May 2023
In Markets
Over many years, withdrawal of stock has averaged about 1.0% – 1.5% of stock each year. There are exceptions. During the period of 2016 to 2020 (the “Spike” as we call it), withdrawals were much higher; averaging around 2.5-3.0% of stock per annum.
This huge withdrawal period led to a rapid decrease in vacancy and led to the “vacancy (not demand) boom” which got us to the top of the market with 3.9% vacancy at the beginning of 2020.
From now, as the market and corporates stabilise and get some clarity, we see withdrawals going back to being about 1.5% average per annum between now and end of 2026. It will be around 2% this year and in 2025 and 1% each of the other years.
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