Standard 5-10 year lease.

  • Typical lease length: 7 years.
  • Typical rent-free: 30 months.
  • Vacancy: 12.6%; trend flat.
  • Standard 5-10 year lease.

Sydney office lease norms

Standard 5-10 year lease.

TL;DR

  • Typical lease length: 7 years.
  • Typical rent-free: 30 months.
  • Vacancy: 12.6%; trend flat.
  • Standard 5-10 year lease.

Structure

Standard 5-10 year lease. Gross or net structure (both common). Australian leases distinguish 'face rent' (headline) from 'effective rent' (face minus incentive). Incentives of 30-40% are now standard — typically structured as rent abatement, fit-out">fit-out contribution, or both.

Negotiating levers

Free rent and TI remain the most negotiable line items; landlords prefer concessions to face-rent cuts because they preserve headline rent and implied valuation. Always model effective rent (face minus PV of concessions).

Key facts

citySydney
countryAustralia
regionAPAC
classARentLocal1480 AUD/sqft/yr
classARentUsd$96/sqft/yr
vacancy12.6%
typicalLeaseYears7
typicalRentFreeMonths30
submarkets6
primeYieldPct5.5%

Frequently asked questions

What's a typical lease term in Sydney?
7 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.
How is rent quoted in Sydney?
In AUD/sqft/year. We also publish a USD-normalised view ($96/sqft/yr) for cross-market comparison.

Editorial provenance

Reviewed by Kenji Watanabe — APAC contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

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