Sydney’s commercial real estate market is one of the most competitive in the Asia-Pacific. Prime CBD office space regularly transacts at rents comparable to Hong Kong and Singapore, while industrial and logistics assets in the western suburbs have seen cap rate compression driven by the growth of e-commerce and the forthcoming Western Sydney Airport. For business owners considering their first lease, expansion, or property purchase, understanding Sydney’s CRE market dynamics is essential.
Sydney Office Market Overview
CBD Premium Office
Sydney’s CBD Premium and A-grade office market is concentrated around Martin Place, Circular Quay, and the Darling Harbour precinct. Premium effective rents (face rent less incentives) range from AUD $1,100 to AUD $1,600 per square metre per annum. Incentives (rent-free periods and fitout contributions) for new leases are running at 30 to 40 percent of face rent as of 2025, reflecting landlord competition for quality tenants. Premium buildings include Brookfield Place (King Street Wharf), ANZ Tower, One Farrer Place, and the Martin Place precinct anchored by Macquarie Group.
CBD A-Grade and B-Grade Office
A-grade CBD office runs AUD $750 to AUD $1,100 per square metre effective. B-grade CBD office (older buildings, lower sustainability ratings) runs AUD $500 to AUD $750 per square metre with higher incentives. For SMEs taking 200 to 1,000 square metres, B-grade stock often provides excellent value in central locations. Many B-grade buildings in the CBD have been converted to mixed-use residential, tightening supply and supporting rents in the remaining stock.
North Sydney Office Market
North Sydney is Sydney’s second major office market with approximately 600,000 square metres of stock. Rents run 25 to 35 percent below equivalent CBD grades. The completion of the Metro City & Southwest extension through North Sydney (2024) has improved connectivity and driven occupier interest. The market suits professional services, technology, and media companies that want a prestigious Sydney address at below-CBD cost. CBRE and JLL are both active in the North Sydney leasing market.
Parramatta and Western Sydney Office
Parramatta’s CBD office market has grown substantially, with A-grade rents running AUD $450 to AUD $650 per square metre, roughly 50 percent below equivalent Sydney CBD rates. New towers at Parramatta Square (Parramatta Square precinct) have added high-quality stock. Government tenants dominate current occupation, but private sector demand from financial services, health, and professional services firms is growing. For businesses serving the 2.5 million people in western Sydney, a Parramatta address provides genuine geographic efficiency.
Industrial and Logistics Real Estate
Sydney Industrial Market
Sydney’s industrial market is among the tightest globally. Vacancy rates for industrial space in Greater Sydney have fallen below two percent, driven by e-commerce demand, supply chain reshoring, and the data centre boom in the outer-west and south-west corridors. Prime industrial rents in the Outer Central West (around Wetherill Park, Eastern Creek, and Greystanes) run AUD $200 to AUD $280 per square metre per annum. South Sydney (closer to Port Botany) trades at AUD $280 to AUD $380 per square metre, reflecting port proximity.
Western Sydney Industrial Opportunity
The Aerotropolis and its surrounding growth corridors (Kemps Creek, Mamre Road precinct) are releasing new industrial land for the first time in decades. Greenfield industrial lots in the Mamre Road Precinct are available at ground rents below AUD $150 per square metre. For logistics, cold chain, food processing, and advanced manufacturing businesses, these sites represent the last significant low-cost industrial opportunity within Greater Sydney. Infrastructure NSW’s western industrial land release schedule is publicly available and updated quarterly.
Top Commercial Real Estate Brokers in Sydney
CBRE Sydney
CBRE is Australia’s largest commercial property services firm with its primary Sydney office in the CBD. Its services cover leasing, sales, property management, and capital markets advisory. For large office leases (above 500 square metres) or investment purchases above AUD $5 million, CBRE’s market depth and data access is unmatched. The firm publishes quarterly Sydney Office MarketView and Industrial reports that are the standard market reference documents.
JLL Sydney
JLL (Jones Lang LaSalle) operates a strong Sydney practice across office, industrial, and retail sectors. JLL is particularly strong in the CBD premium market and has advised on several of Sydney’s largest office leasing transactions. Its tenant representation team is recommended for businesses above 300 square metres that need independent advice on lease negotiations without a landlord alignment conflict.
Colliers Australia
Colliers has a large Sydney team covering office leasing, industrial leasing, project management, and property management. Its industrial team is among the most active in the western Sydney market. For logistics and supply chain businesses seeking Aerotropolis or south-west corridor sites, Colliers’ western Sydney industrial specialists provide the most current market intelligence.
Knight Frank Sydney
Knight Frank’s Sydney operation focuses on premium office, luxury retail, and residential. Its research team publishes Sydney-specific reports on a range of asset classes. For smaller occupiers (under 300 square metres) in inner-city creative precincts (Surry Hills, Chippendale, Pyrmont), Knight Frank’s leasing team regularly handles boutique office and studio transactions that larger agencies do not prioritise.
Key Leasing Considerations in NSW
NSW commercial leases are generally subject to the Retail Leases Act 1994 for retail premises. For non-retail commercial leases, the Conveyancing Act and common law govern terms. Key points for Sydney business tenants: request a Disclosure Statement from the landlord before signing, negotiate make-good obligations carefully (CBD fitout make-good can cost AUD $200 to AUD $600 per square metre), and ensure assignment rights allow you to transfer the lease in a business sale scenario. Always engage a lawyer to review leases above AUD $500,000 total commitment.
For the broader market picture and growth precincts, see our Sydney opportunity zones guide. For funding to support property investment or tenancy fitout, see our small business funding in Sydney guide. For official NSW planning information affecting commercial sites, visit the NSW Government planning portal.
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