Independent Office Market Update 2020


Sydney continues to be one of the tightest CBD office markets nationally in history. It is challenging for tenants in a landlord’s market.

Market Status

• Across Premium, A and B grades; vacancy has decreased to 3.7% due to withdrawals and high demand from traditional suburban tenants transitioning to the CBD.
• Disposition and sub lease opportunities are increasing.
• Incentives remain soft but have increased slightly in Q3.
• There will be a CBD increase in supply in the next 2-3 years.
• Best Performing non-CBD markets were Parramatta and Chatswood.

Vacancy Rates in key areas*

Chatswood 3.7% (decreased)
Crows Nest/St Leonards 7.0% (decreased)
Macquarie Park 4.4% (increased)
Newcastle 9.1% (no change)
North Sydney 7.6% (increased)
Parramatta 3.2% (increased)
Surry Hills 4.2% (no change)
Sydney CBD 3.9% (decreased)


Melbourne has the tightest office market vacancy rates in history, due to stock withdrawal and steady population growth.

Market Status

• Disposition and sub lease opportunities are increasing.
• Incentives are stagnant.
• Significant stock supply to come to market this year. The biggest annual increase in 3 decades (90% pre committed).
• Best performing non CBD markets were East Melbourne 2.4% vacancy. This area is of strong preference for banking, government and professional services.

Vacancy Rates in key areas*

East Melbourne 2.4% (increased)
Melbourne CBD 3.2% (decreased)
Southbank 8.0% (no change)
St Kilda Road  4.2% (no change)


Brisbane’s office market demand has increased partially and is recovering from very high vacancy rates.

Market Status

• Demand for Premium in the CBD and A Grade in Brisbane fringe has increased +.7pts.
• Disposition opportunities are still relatively in high demand.
• Incentives are high with a range of options.
• Companies seek to attain higher savings.

Vacancy Rates in key areas*

Brisbane CBD 12.7% (increased)
Brisbane Fringe 13.7% (no change)



• In these market conditions, it’s critical to have a tenant representative to extract the best possible outcome for your business.
• TRS’ independence from landlords / agents creates stronger leverage on your behalf.
• We offer advisory services across commercial leasing, renewals, fitouts and make goods.
• Whether you stay or go TRS can optimise your negotiations on any lease service.

We provide independent expert advice to save you more.

*TRS research July 19 – Jan 20 vs. previous 6 month period

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