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LEASING SERVICES Market Overview & Forecast Sydney Office Market The Sydney CBD office market is currently experiencing the lowest vacancy rate in ten years. At 4.1%, the Sydney CBD office market is experiencing near record low vacancy with the possibility of a new record in the second half of 2019. The low rate has been driven by a combination of factors including strong tenant demand, the withdrawal of stock for infrastructure projects, office redevelopments and residential conversions. The current sustained period of low vacancy has driven strong rental growth over the last three years with Prime gross effective rents having risen by 35% between December 2015 and December 2018. With demand conditions expected to remain favourable and limited new supply until 2022, vacancy is expected to remain below the long term average for the next five to seven years and support landlord favourable conditions. Please see following the Sydney supply showing tightened market conditions. The following does not capture the deals currently being negotiated that are expected to sign off. We are aware of many active negotiations that will further tighten supply. For example, WeWork is rumoured to be taking 11,000sqm at 320 Pitt Street taking a large tranche of vacancy out of the market. *For a more detailed market update we have annexed the latest Cushman and Wakefield Research Report. < CONTENTS > 91