Overview
LPC opened its first office in Sydney in 1994 and has since expanded to all states across Australia and into New Zealand.
Sydney, with a population of over 5.25 million, is Australia’s largest city and a major global financial and cultural hub. As the capital of New South Wales, it is home to over 82,000 local businesses. The city’s infrastructure continues to evolve, with key projects like the Western Sydney International Airport, Sydney Metro – West expansion, and the M12 motorway set to improve connectivity and drive future growth.
Sydney is the financial capital of Australia, housing the Australian Securities Exchange and numerous banks. It also serves as a hub for fintech, digital services, and tech startups, with a strong presence of legal, consulting, and accounting firms. The Westmead Health and Innovation District leads in medical research and healthcare, while the city’s universities foster a thriving research environment.
With over 1,081,000 companies from 66 countries, Sydney is a key player in the global business landscape, attracting companies from countries such as the United States, the United Kingdom, Singapore, and Japan.
Sydney - Office
As of Q1 2025, Sydney's CBD office market is stabilising after a period of significant new supply. The vacancy rate has risen to 12.8%, up from 11.6%, due to the delivery of new office space. Leasing activity remains steady, with net absorption of 13,500 sqm in Q1 2024, driven by strong demand for premium-grade office space. Secondary-grade spaces have seen a decline.
Prime net face rents have increased modestly, averaging $1,325/sqm in Q1 2025, with incentives tightening slightly, leading to a 1% rise in net effective rents. Looking ahead, the market is expected to maintain its current trajectory, supported by continued demand for premium office assets and a stable economic outlook.
Sydney - Industrial
As of Q4 2024, Sydney's industrial market saw a slight increase in vacancy rates to 2.5%, up from 2.1% in the previous quarter, driven by new speculative supply and backfill leasing opportunities. Leasing activity remained steady, with 123,000 sqm of space taken up during the quarter, led by demand from the manufacturing sector, which accounted for 50% of total leasing.
Super prime net face rents continued to rise, increasing by 2.2% in Q4 2024, reflecting strong demand for high-quality industrial assets in key locations. Looking ahead, continued speculative supply may increase vacancy rates, but expected interest rate cuts could support demand, particularly from retailers and logistics operators.
Sydney - Retail
As of Q4 2024, Sydney's retail market showed steady performance, driven by consistent consumer spending. Retail turnover in New South Wales increased by 0.5% month-on-month in November, with department stores and clothing retailers leading the growth.
The expansion of the Sydney Metro is expected to boost foot traffic in the CBD, improving access for shoppers. Retail vacancy rates in the city are expected to continue tightening due to ongoing population growth and increased demand for retail spaces.
Looking forward, the retail market in Sydney is set to grow, supported by infrastructure improvements and strong consumer demand.
