Sydney office vacancy rate tightens while Perth hits 19.6%: JLL

Sydney's office vacancy rate has tightened to 7.7%, below the long-term average, according to research from JLL.

The Sydney CBD recorded positive net absorption of 25,600 square metres in the third quarter, taking the 12-month total to 148,000 square metres.

Its vacancy rate now sits below the 20-year average of 8.3%

Demand in the Sydney CBD was concentrated in the technology sector and also education providers, who are now a strong source of occupancy.

All the other state capitals recorded positive net absorption in the third quarter, except for Perth where the vacancy rate sits at 19.6%, its worst since 1995.

JLL's head of office leasing, Australia, Tim O'Connor said Sydney also had increased activity from financial services and infrastructure sector tenants.