Property Forecasting > Report

Sydney Suburban Centres and Office Parks 2020 - 2030

​Fallout from the COVID-19 pandemic has significantly changed the outlook for the Sydney’s suburban office markets. Demand is expected to slump near term as the NSW economy enters a sharp recession in 1H20. Only committed tenant moves are likely to proceed this year – benefitting Parramatta, North Sydney, St Leonards and Macquarie Park. However, substantial new supply due in these markets (and weak demand for others) will see vacancy rates rise by year end, triggering a setback to rents. Between 2022 and 2024, we expect a strong bounce-back in demand to absorb the current round of construction, lowering the non-CBD vacancy rate and setting in train a renewed upswing in rents to a (delayed) peak in 2024. However, we caution that it could well be worse over the short to medium term – more severe in both extent and duration.

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