Market Pulse CBD June-26 pages - Flipbook - Page 16
Market Pulse Sydney CBD Office Market
Rents
Face rents grew between 3.7%-5.1% over the 12 months to Mar-26. These growth rates are a little lower than the
previous quarter. Across building grades, Premium marginally lagged the other two investment grades following an
extended period of outperformance.
Effective rental growth (12-month) was higher than face rental growth in Premium stock, implying a slight tightening
in Premium incentives. However, growth in A and B grade effective rents was less than for face rents as incentives
continued to soften in these grades.
Net effective rents in Premium space have recovered to their pre-pandemic peak,
currently sitting at 99% of the Dec-19 level. However, both A grade (85%) and B grade (83%) still have some way to go.
The wide gap that has emerged between Premium and A grade rents (both face and effective) has begun to show signs of
narrowing over Q1 2026.
Face & Effective Rents
PREMIUM
A GRADE
B GRADE
Average
Rate
(psqm)
12 month
change
6 month
change
Average
Rate
(psqm)
12 month
change
6 month
change
Average
Rate
(psqm)
12 month
change
6 month
change
Net Face
$1,646
3.7%
2.0%
$1,267
4.5%
2.9%
$1,008
4.2%
2.1%
Gross Face
$1,919
4.2%
2.1%
$1,499
4.6%
2.5%
$1,228
5.1%
2.0%
Net Effective
$992
5.7%
3.6%
$685
3.5%
3.1%
$541
3.6%
2.3%
Gross Effective
$1,266
5.9%
3.5%
$917
3.9%
2.4%
$761
5.1%
2.1%
Rent
Data as at Mar-26
Net Effective Rent
16 | cadigal.com.au
