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Since the turn of the century, more often than not, relatively high Sydney CBD office vacancy rates have favoured tenants in lease negotiations. However, stronger economic growth in the service industries combined with limited new supply and stock withdrawals is likely to result in vacancy rates remaining below the long term average until at least 2020. This suggests Sydney CBD office fundamentals may finally be lining up to allow landlords to ride a wave of falling vacancy and stronger rental growth over the next five years.
National Director, Research
+61 2 8243 9973