Office rents near the bottom
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Prime CBD office rents fell more than 10 per cent in Sydney and Melbourne in 2020 as vacancy rates surged during the pandemic, according to real estate agents Cushman & Wakefield.
While base rents – also known as face rents – rose modestly in both markets, a spike in incentives offered to new or renewing tenants meant that effective rents fell sharply in both markets over the calendar year.
In the Sydney CBD, gross effective rents fell 11.3 per cent in 2020 to $925 per square metre (from $1045 per sq m) after incentives increased to 32 per cent from 21 per cent prior to the pandemic.