Rents for new office leases in the Sydney CBD have gone up every year since 2021. The pace has varied; the direction has not.
The median commencing office rent in the Sydney CBD rose from $995/m² in 2021 to $1,245/m² in 2026, an increase of 25.1% over the period.
Six years of growth
The median commencing rent increased in each of the six years in the series: 4.1% in 2021, 3.0% in 2022, 8.8% in 2023, 1.8% in 2024, 7.9% in 2025 and 1.6% in 2026.
Strong years and consolidation years
Growth has come in steps rather than a steady climb. The two strongest years, 2023 (+8.8%, to $1,115/m²) and 2025 (+7.9%, to $1,225/m²), were each followed by a much smaller rise — 1.8% in 2024 and 1.6% in 2026 so far — as the market consolidated at the new level before the next move.
What commencing rents measure
Commencing rents record the rate agreed at the start of each new lease, so they show what occupiers are committing to today rather than the average across existing leases. For occupiers planning a move or a renewal in the CBD, the benchmark has moved up by around $250/m² in five years.
| Year | Median commencing rent | Year-on-year growth |
|---|---|---|
| 2021 | $995/m² | +4.1% |
| 2022 | $1,025/m² | +3.0% |
| 2023 | $1,115/m² | +8.8% |
| 2024 | $1,135/m² | +1.8% |
| 2025 | $1,225/m² | +7.9% |
| 2026 | $1,245/m² | +1.6% |
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