Confidential · Prepared for REINSW

Year-End Report · 2025

Greater Sydney
Office & Industrial
Market Report

Year-end analysis of leasing activity, sales transactions and investment performance across the Greater Sydney office and industrial markets. Data period: January – December 2025.

Arealytics · Greater Sydney Market Report 2025

Office Market — Sales Activity & Investment Performance

State Comparison

2025 Office Sales Activity State Comparison

State	Deal Count	Total Sales Volume	Median Price /m²	YoY Price /m² Change	Avg Yield
Greater Sydney	962	$5,892,267,893	$9,076	-3.92%	6.2%
SEQ	827	$2,758,744,382	$5,640	5.58%	7.0%
South Australia	335	$857,837,506	$5,281	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%

Greater Sydney continued to assert its dominance across Australia's office investment market in 2025, recording both the highest transaction volume and the largest total sales figure of any state. With 962 deals completed and a combined sales volume of $5.89 billion — more than double that of any other market — Sydney's depth of investor activity remained unmatched nationally.

Despite recording a year-on-year decline in median pricing of 3.92%, Greater Sydney's median sale price of $9,876/sqm sat well above every other major office market. That figure is 75% higher than South East Queensland's $5,640/sqm and 114% above Western Australia's $4,612/sqm, reinforcing Sydney's position as the nation's premier office investment market by both scale and pricing.

Sales by Structure Type

2025 Office Sales Activity by Structure Type

The Greater Sydney office investment activity in 2025 was driven by strata assets, which accounted for 801 transactions and recorded a modest 1.7% increase in median pricing to $9,083/sqm. However, investor capital remained concentrated in freehold assets, with 161 transactions generating more than $4.9 billion in sales volume and achieving a tighter average yield of 5.7%, despite median pricing declining 3.9% year-on-year.

Strata801deals

Total Sales Volume$909,601,956

Median Sale Price$835,000

Median Building Area97 m²

Median Price / m²$9,083

1 Year Price / m² Change+1.67%

Average Yield6.7%

Freehold161deals

Total Sales Volume$4,982,665,937

Median Sale Price$4,503,500

Median Building Area559 m²

Median Price / m²$8,727

1 Year Price / m² Change-3.92%

Average Yield5.7%

Historical Activity

Greater Sydney Office Sales Activity by Year

Bars — total sales volume ($B) · figure beneath each year — deal count

The Greater Sydney office market remained Australia's largest office investment market in 2025, recording $5.9 billion in sales across 962 transactions. While activity remained below the record levels achieved in 2019, that peak reflected an exceptional period of historically low interest rates, strong offshore capital inflows and significant institutional investment. Higher financing costs and evolving workplace demand have contributed to a more selective investment environment in recent years, although investor confidence improved throughout 2025 as pricing expectations became more closely aligned and yields stabilised.

Investment activity remained concentrated in high-quality assets, with investors continuing to favour properties offering secure income streams and strong long-term leasing fundamentals. Despite softer market conditions, Greater Sydney continued to account for the highest level of office investment activity nationally.

Arealytics · 2025 Greater Sydney Office Market Report

arealytics.com.au · Copyright Arealytics 2026

Arealytics · Greater Sydney Market Report 2025

Office Market — Lease Activity & Rate Trends

Lease Rate Trends

Greater Sydney Office Commencing Lease Rate / m² Trends

25th Percentile

Median

75th Percentile

Office leasing conditions in Greater Sydney strengthened in 2025, with the median commencing rent rising to $895/sqm while rents achieved at the upper end of the market 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.

Lease Structure

Most Common Lease Rate Types and Escalation in 2025 Office Leases

Most Common Lease Rate Types

Percentage of Total

Fixed (71.6%)

Fixed, Market (19.1%)

Greater of % of CPI (7.3%)

CPI (1.3%)

The Greater Sydney office leasing market continued to favour fixed rental growth mechanisms in 2025, with 71.6% of leases incorporating fixed annual increases and only a small proportion linked solely to CPI movements. Among these leases, 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.

Top Escalation Rates

Percent of Total

Top Lease Terms

Percent of Total

89.0%

Net Leases dominate the current market activity

12.3%

Renewals are a minor share of market volume

7.6%

Subleases remain a marginal market factor

Arealytics · 2025 Greater Sydney Office Market Report

arealytics.com.au · Copyright Arealytics 2026

Arealytics · Greater Sydney Market Report 2025

Office Market — Suburb Pricing Summary

Suburb Pricing

Pricing Summary for Top 20 NSW Suburbs by Transaction Count

The Greater Sydney market continued to attract strong leasing and investment activity in 2025, with rental rates and sales pricing reflecting a broad mix of asset types, locations and occupier demand.

Suburb	25th %ile Rate	Median Rate	75th %ile Rate	Lease Count	Med Freehold /m²	FH Deals	Med Strata /m²	Strata Deals
Sydney	$975	$1,190	$1,400	796	$11,961	8	$13,636	41
North Sydney	$775	$850	$970	168	$11,907	7	$8,208	11
Parramatta	$450	$585	$675	120	$5,536	4	$6,802	6
Macquarie Park	$440	$470	$485	80	$5,319	1	$4,111	2
Surry Hills	$730	$901	$1,073	74	$14,701	5	$14,286	8
Chatswood	$600	$690	$790	60	$8,283	1	$12,019	11
Hurstville	$420	$520	$668	58	$2,903	2	$4,500	3
Alexandria	$410	$469	$628	57	$17,013	1	$6,571	11
Penrith	$303	$371	$442	54	$9,328	4	$5,102	3
Haymarket	$675	$1,000	$1,020	40	$0	0	$1,786	2
Bankstown	$360	$464	$550	36	$0	0	$4,784	2
Crows Nest	$373	$520	$805	36	$15,217	1	$10,667	3
St Leonards	$627	$690	$710	30	$5,286	1	$12,709	3
Mascot	$500	$530	$575	25	$5,253	1	$8,525	3
Pyrmont	$600	$850	$896	22	$24,119	1	$9,402	7
The Rocks	$1,550	$1,800	$2,000	21	$10,238	1	$6,522	2
Norwest	$372	$390	$410	20	$5,769	1	$11,936	33
Burwood	$319	$372	$536	19	$6,035	2	$5,285	2
Campbelltown	$224	$333	$447	16	$0	0	$6,748	6
Liverpool	$380	$388	$550	14	$0	0	$5,494	6

Arealytics · 2025 Greater Sydney Office Market Report

arealytics.com.au · Copyright Arealytics 2026

Arealytics · Greater Sydney Market Report 2025

Industrial Market — Sales Activity & Investment Performance

Greater Sydney 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.

It recorded a median sale price of $5,844/sqm and the lowest average yield among the major states at 4.4%, highlighting 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 Price /m²	YoY Price /m² Change	Avg Yield
Greater Sydney	1,572	$6,754,125,394	$5,844	-0.8%	4.4%
SEQ	2,155	$6,374,733,633	$4,247	12.1%	5.5%
South Australia	574	$1,608,947,782	$3,055	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	YoY 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%

The Greater Sydney industrial market exhibited a clear split between high-volume strata activity and large-scale freehold investment in 2025. Strata assets accounted for nearly three-quarters of all transactions and recorded stronger annual price growth of 11.0%. In contrast, freehold properties generated almost $5.7 billion in sales volume from just 401 transactions, highlighting continued investor demand for larger industrial assets.

Historical Activity

Greater Sydney 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

Industrial investment activity totalled $6.7 billion across 1,572 transactions in 2025, broadly in line with the levels recorded over the past three years. While remaining below the post-pandemic peak of $9.7 billion achieved in 2021, the consistency of both sales volume and transaction activity reflects the sustained depth of investor demand for industrial assets. Ongoing population growth, expanding freight and logistics requirements, and the limited supply of industrial land across key markets have continued to support the sector's long-term fundamentals.

Investor activity remained concentrated on well-located assets with access to major transport infrastructure and established distribution networks, reinforcing the industrial sector's position as one of the state's most sought-after commercial property asset classes.

Arealytics · 2025 Greater Sydney Industrial Market Report

Arealytics · Greater Sydney Market Report 2025

Industrial Market — Lease Activity & Rate Trends

Lease Rate Trends

Greater Sydney Industrial Lease Rate Per Square Metre Trends

25th Percentile

Median

75th Percentile

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 Greater Sydney.

Lease Structure

Most Common Lease Rate Types and Escalation in 2025 Industrial Leases

The Greater Sydney 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

Percentage of Total

Fixed (66.3%)

Greater of % of CPI (21.8%)

Fixed, Market (7.7%)

Market, CPI (2.1%)

Top Escalation Rates

Percent of Total

Top Lease Terms

Percent of Total

88.2%

Net Leases dominate the current market activity

12.2%

Renewals are a minor share of market volume

1.2%

Subleases remain a marginal market factor

Arealytics · 2025 Greater Sydney Industrial Market Report

Arealytics · Greater Sydney Market Report 2025

Industrial Market — Suburb Pricing Summary

Suburb Pricing

Pricing Summary for Top 20 Greater Sydney Suburbs by Transaction Count

Greater Sydney's industrial market continued to exhibit a diverse range of leasing and investment outcomes in 2025, with activity spanning a broad mix of established precincts. Variations in rental rates, sales pricing and transaction volumes demonstrate the influence of location and asset quality, while continued leasing and sales activity across multiple markets reflects the sector's broad occupier and investor appeal.

Suburb	25th %ile Rate	Median Rate	75th %ile Rate	Lease Count	Med Freehold /m²	FH Deals	Med Strata /m²	Strata Deals
Alexandria	$365	$425	$500	80	$9,669	7	$8,333	27
Banksmeadow	$335	$375	$467	46	$6,771	3	$8,170	16
Bankstown	$241	$243	$262	30	$5,286	3	$5,294	4
Caringbah	$261	$296	$416	102	$7,258	4	$8,404	34
Castle Hill	$230	$254	$286	44	$0	0	$6,307	19
Chipping Norton	$187	$228	$250	61	$3,358	1	$5,663	8
Condell Park	$223	$264	$280	32	$6,491	1	$5,618	10
Emu Plains	$174	$195	$231	45	$4,434	2	$7,690	3
Ingleburn	$167	$205	$230	40	$5,263	4	$4,405	11
Kirrawee	$243	$300	$390	48	$3,030	2	$3,876	6
Marrickville	$313	$371	$419	41	$6,233	15	$8,897	17
Minto	$163	$181	$212	36	$4,909	3	$4,340	8
Moorebank	$210	$244	$294	73	$4,685	6	$6,890	18
Padstow	$161	$200	$220	31	$4,894	1	$5,963	3
Prestons	$200	$215	$257	56	$3,922	4	$4,684	9
Revesby	$190	$236	$276	39	$5,293	8	$5,479	37
Seven Hills	$185	$227	$260	61	$5,249	5	$3,608	12
Smeaton Grange	$180	$189	$203	42	$1,839	2	$4,527	23
Smithfield	$195	$244	$255	92	$4,936	15	$6,074	18
Wetherill Park	$203	$232	$271	240	$5,473	10	$5,850	12

Arealytics · 2025 Greater Sydney Industrial Market Report

Greater SydneyOffice & IndustrialMarket Report

Greater Sydney
Office & Industrial
Market Report