Sydney CBD office demand benefits from positive indicators
The Barometer moved to +2.1% in the December 2017 quarter, remaining at a high level despite easing slightly in the quarter.
Sydney CBD office demand should continue to benefit from positive indicators.
Positive business confidence and a strong share market are supporting leasing demand for office space.
The labour market in NSW remains healthy, with around 139,000 jobs created in NSW last year, up 3.7% from December 2016.
Leasing inquiry from small to medium companies remained solid through December and January.
We expect the vacancy rate in the CBD to fall further over the next year given a lack of forecast new supply.
As the availability of space in the CBD tightens, other markets such as North Sydney stand to benefit from the overflow of demand.