Year-end analysis of leasing activity, sales transactions and investment performance across the New South Wales office market. Data period: January – December 2025.
Data Period · January — December 2025
Copyright Arealytics 2026 · All rights reserved
Arealytics · NSW Market Report 2025
Office Market — Lease Activity & Rate Trends
01 — Lease Rate Trends
NSW Office Commencing Lease Rate / m² Trends
Office leasing conditions in New South Wales strengthened in 2025, with the median commencing rent rising to $895/sqm while rents at the higher end reached a record $1,225/sqm.
The widening spread between median and higher-value leasing transactions suggests occupier demand remained concentrated in premium office accommodation, with tenants continuing to favour quality assets offering strong amenity and workplace outcomes.
02 — Lease Structure
Most Common Lease Rate Types and Escalation in 2025 Office Leases
The New South Wales office leasing market continued to favour fixed rental growth mechanisms in 2025, with 71.6% of leases incorporating fixed annual increases and a small proportion relating to CPI movements. Among these, 4.0% annual escalations were the most prevalent, reflecting landlord and tenant preference for predictable income growth amid a still-evolving inflation and interest rate environment.
Most Common Lease Rate Types
Percent of Total
Top Escalation Rates
Percent of Total
Top Lease Terms
Percent of Total
Arealytics · 2025 NSW Office Market Report
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Arealytics · NSW Market Report 2025
Office Market — Suburb Pricing Summary
03 — Suburb Data
Pricing Summary for Top 20 NSW Suburbs by Transaction Count
The New South Wales office market continued to support strong leasing and investment activity in 2025, with rental rates and sales pricing reflecting a broad mix of asset types, locations and occupier demand.
Arealytics · 2025 NSW Office Market Report
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Arealytics · NSW Market Report 2025
Office Market — Sales Activity & Investment Performance
New South Wales continued to dominate Australia's office market, recording both the highest number of transactions and the largest sales volume for 2025. Total sales volume was more than double that of any other state, reflecting strong investor demand.
NSW recorded a year-on-year decline in median pricing to $9,076/sqm, but remained well above other major markets — 61% higher than Queensland and 97% higher than Western Australia — reinforcing its position as the nation's leading office investment market.
State Comparison
2025 Office Sales Activity — State Comparison
| State | Deal Count | Total Sales Volume | Median $/m² | YoY Price Change | Avg Yield |
|---|---|---|---|---|---|
| New South Wales | 962 | $5,892,207,893 | $9,076 | -3.92% | 6.2% |
| Queensland | 827 | $2,758,744,382 | $5,640 | 5.58% | 7.0% |
| South Australia | 530 | $857,837,506 | $5,640 | 6.04% | 5.7% |
| Victoria | 843 | $3,329,956,419 | $5,891 | 4.25% | 7.1% |
| Western Australia | 410 | $698,550,030 | $4,612 | 12.9% | 4.9% |
Sales by Structure Type
2025 Office Sales Activity by Structure Type
| Structure Type | Deal Count | Total Sales Volume | Median Sale Price | Med Bldg Area m² | Median Price /m² | 1yr Change | Avg Yield |
|---|---|---|---|---|---|---|---|
| Strata | 801 | $909,601,956 | $835,000 | 97 | $9,083 | 1.67% | 6.7% |
| Freehold | 161 | $4,982,665,937 | $4,503,500 | 559 | $8,727 | -3.92% | 5.7% |
Historical Activity
NSW Office Sales Activity by Year
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales Volume | $6.6B | $12.5B | $10.4B | $18.8B | $6.7B | $9.4B | $7.7B | $5.2B | $7.6B | $5.9B |
| Deal Count | 1,679 | 1,585 | 1,232 | 1,138 | 921 | 1,544 | 1,273 | 1,016 | 1,102 | 962 |
Arealytics · 2025 NSW Office Market Report
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Year-end analysis of leasing activity, sales transactions and investment performance across the New South Wales industrial market. Data period: January – December 2025.
Data Period · January — December 2025
Copyright Arealytics 2026 · All rights reserved
Arealytics · NSW Market Report 2025
Industrial Market — Lease Activity & Rate Trends
01 — Lease Rate Trends
NSW Industrial Lease Rate Per Square Metre Trends
Commencing industrial rents continued their upward trajectory in 2025, with the median rate reaching $244/sqm, while rents across the broader market increased substantially from 2021 levels.
The widespread nature of this rental growth points to strong occupier demand and limited availability of quality industrial space across New South Wales.
02 — Lease Structure
Most Common Lease Rate Types and Escalation in 2025 Industrial Leases
The New South Wales industrial leasing market continued to favour fixed rental growth mechanisms in 2025, with 66.3% of leases incorporating fixed annual increases. Annual escalations of 4.0% remained the market standard, reinforcing the importance of income certainty for both landlords and tenants in an increasingly competitive industrial sector.
Most Common Lease Rate Types
Percent of Total
Top Escalation Rates
Percent of Total
Top Lease Terms
Percent of Total
Arealytics · 2025 NSW Industrial Market Report
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Arealytics · NSW Market Report 2025
Industrial Market — Suburb Pricing Summary
03 — Suburb Data
Pricing Summary for Top 20 NSW Industrial Suburbs by Transaction Count
The New South Wales industrial market continued to attract a diverse range of leasing and investment outcomes in 2025, with activity spanning a broad mix of established precincts across Greater Sydney and key regional corridors.
Arealytics · 2025 NSW Industrial Market Report
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Arealytics · NSW Market Report 2025
Industrial Market — Sales Activity & Investment Performance
New South Wales continued to attract significant industrial investment in 2025, generating the highest sales volume nationally at $6.7 billion. Despite a modest 0.8% year-on-year decline in median pricing, NSW remained Australia's most highly valued industrial market.
A median sale price of $5,844/sqm and the lowest average yield among the major states at 4.4% highlights the ongoing premium investors place on industrial assets across the state.
State Comparison
2025 Industrial Sales Activity — State Comparison
| State | Deal Count | Total Sales Volume | Median $/m² | YoY Price Change | Avg Yield |
|---|---|---|---|---|---|
| New South Wales | 1,572 | $6,754,125,394 | $5,844 | -0.8% | 4.4% |
| Queensland | 2,155 | $6,374,733,638 | $4,247 | 12.1% | 5.5% |
| South Australia | 648 | $1,609,947,782 | $5,865 | 14.2% | 5.7% |
| Victoria | 2,848 | $6,124,579,113 | $3,300 | 0.5% | 4.8% |
| Western Australia | 980 | $1,779,992,789 | $3,007 | 19.1% | 5.6% |
Sales by Structure Type
2025 Industrial Sales Activity by Structure Type
| Structure Type | Deal Count | Total Sales Volume | Med Bldg Area m² | Median Price /m² | 1yr Change | Avg Yield |
|---|---|---|---|---|---|---|
| Strata | 1,171 | $1,984,934,698 | 194 | $5,932 | 11.0% | 4.4% |
| Freehold | 401 | $5,726,776,530 | 918 | $5,344 | 8.3% | 4.4% |
Historical Activity
NSW Industrial Sales Activity by Year
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales Volume | $5.8B | $5.0B | $6.8B | $5.0B | $5.5B | $9.7B | $7.9B | $6.4B | $7.0B | $6.7B |
| Deal Count | 2,048 | 2,003 | 1,524 | 1,316 | 1,552 | 1,995 | 1,755 | 1,526 | 1,655 | 1,572 |
Arealytics · 2025 NSW Industrial Market Report
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