---
title: "Sydney office lease norms"
description: "Lease structure, term length, concessions, and the unwritten rules of leasing Class A office in Sydney."
canonical: https://classa.info/cities/sydney/leasing-conventions
pageType: city-topic
lastUpdated: 2026-04-15T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> 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.

# 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](/glossary/face-rent)' (headline) from '[effective rent](/glossary/effective-rent)' (face minus incentive). Incentives of 30-40% are now standard — typically structured as rent abatement, [fit-out](/topics/fit-out-capex)">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](/glossary/headline-rent) and implied valuation. Always model effective rent (face minus PV of concessions).

## Key facts

| city | Sydney|
| country | Australia|
| region | APAC|
| classARentLocal | A$1,480/sqm/yr · ≈ $89.4 PSF/yr USD|
| classARentUsd | $89/sqft/yr|
| vacancy | 12.6%|
| typicalLeaseYears | 7|
| typicalRentFreeMonths | 30|
| submarkets | 6|
| primeYieldPct | 5.5%|

## Frequently asked questions

****What's a typical lease term in Sydney?****
: 7 years for institutional [Class A](/glossary/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 ($89/sqft/yr) for cross-market comparison.

## Editorial provenance

Reviewed by [**Kenji Watanabe**](/about/authors/kenji-watanabe) — APAC contributing editor. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards).

### Primary sources for this page

- [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE
- [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL
- [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield
- [Savills World Research](https://www.savills.com/research_articles/) — Savills
- [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers

[Full sources index](/about/sources) · [Submit a correction](/about/corrections)

## Related topics

- [**Class A Lease Negotiation**](/topics/class-a-lease-negotiation) — How to negotiate a Class A office lease — the playbook from LOI to signed deal.
- [**APAC Lease Conventions**](/topics/apac-lease-conventions) — How APAC office lease conventions differ from US/UK — and how to translate before signing.

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Citation: Source: Class A Atlas (https://classa.info/cities/sydney/leasing-conventions), updated 2026-04-15T00:00:00.000Z.