By Conrad Vass · Market Insights ·
Quick answer
Surry Hills’ creative office market remains exceptionally tight in 2026, supported by low vacancy rates, Metro connectivity, strong tenant demand and ongoing investment around Central Station and Wentworth Avenue.
Key takeaways
- Prime creative office vacancy rates are as low as 2.5% in parts of Surry Hills.
- Metro proximity is increasingly influencing office values and leasing demand.
- The strongest demand remains concentrated around Central Station and Wentworth Avenue.
- The $250 million Willow Group redevelopment has raised expectations for creative office space.
- Office suites between 200sqm and 500sqm remain in particularly short supply.
- Building upgrades and quality amenities can help older assets compete with newer developments.
- Surry Hills continues attracting technology, media and creative-sector occupiers.
Surry Hills (2010) has firmly established itself as one of Sydney’s most resilient commercial precincts. In the second quarter of 2026, the combination of high-quality building upgrades and the fully operational Sydney Metro network has strengthened demand for creative office space across the suburb. For landlords and investors, the conversation has shifted beyond simply securing a tenant. The focus is increasingly on creating workplaces that align with the expectations of modern businesses and their staff.
With prime vacancy rates sitting as low as 2.5% in some pockets, the area surrounding Central Station and Wentworth Avenue continues to attract strong interest from occupiers seeking connectivity, character and convenience. According to Space Property Agency, demand is increasingly concentrated around well-presented creative workspaces that offer both authenticity and easy Metro access.
The Metro Multiplier: Why Proximity Is Driving Demand
Connectivity is one of the defining themes of the Surry Hills office market in 2026. The expansion of the Sydney Metro has altered how occupiers assess commercial property, particularly within walking distance of key transport infrastructure.
Businesses in technology, media and creative industries are placing greater importance on locations close to the Buckingham Street and Elizabeth Street entrances to Central Station. For many employers, convenient transport access is not simply an employee benefit; it has become part of attracting and retaining talent.
Space Property Agency has observed that businesses are prepared to pay a premium for office suites that allow staff to travel from areas such as the North Shore and Western Sydney in less than 30 minutes. As a result, the western edge of Surry Hills, particularly around Buckingham Street, continues to attract significant attention from occupiers seeking a competitive advantage through location.
Drawing on current leasing activity, the agency’s view is that proximity to Metro infrastructure has become a long-term contributor to office value. Assets located within a short walk of Metro entrances are generally better positioned than comparable stock further from major transport connections.
By the Numbers: Surry Hills Office Vacancy and Rental Trends
Market conditions across Surry Hills remain notably tight compared with many larger office precincts. While parts of the Sydney CBD continue adjusting to hybrid working patterns and elevated levels of sublease stock, Surry Hills has benefited from the characteristics that originally attracted creative occupiers to the area.
Smaller floor plates, warehouse conversions, generous natural light and adaptable workspaces continue to appeal to businesses looking for offices that support collaboration and workplace culture.
Market Data Snapshot: Q2 2026
| Metric | Prime Creative (A-Grade) | Secondary / Refurbished | | -------------------- | ------------------------ | ----------------------- | | Vacancy Rate | 2.5% – 3.8% | 5.2% – 6.7% | | Gross Rent (per sqm) | $950 – $1,100 | $800 – $925 | | Incentives | 15% – 22% | 20% – 28% | | Average Lease Term | 5 – 7 Years | 3 – 5 Years |
Source: Space Property Agency Internal Data & Suburb Market Analysis 2026.
According to Conrad Vass, competition remains strongest for well-presented office suites between 200sqm and 500sqm. Limited supply within this segment has resulted in multiple parties pursuing quality opportunities, with some properties generating strong enquiry before reaching major leasing portals.
The $250 Million Willow Group Transformation
One of the most influential contributors to recent rental growth across the 2010 postcode has been the $250 million transformation undertaken by Willow Group on Wentworth Avenue.
Designed through a collaboration between DKO and Aileen Sage, the project has helped redefine expectations around creative office accommodation within the city fringe. Rather than simply adding commercial floor space, the development has contributed to the renewal of the surrounding streetscape while combining heritage industrial architecture with contemporary sustainability features.
The project has attracted a mix of global technology firms and boutique venture capital businesses, further strengthening the area's reputation as a destination for innovation-focused occupiers.
Local Street Insights
Wentworth Avenue Increasingly recognised as a focal point for technology and innovation businesses, supported by major redevelopment activity and proximity to Central Station.
Foveaux Street Remains a preferred location for fashion, design and creative businesses seeking character-filled workspace.
Buckingham Street Continues to attract interest through boutique office conversions and proximity to key transport infrastructure.
Kippax Street Reflects the suburb’s transition from its wholesale and industrial history to a modern creative-commercial environment.
According to Conrad Vass, investment in surrounding precincts often creates opportunities for owners of existing commercial assets. Improvements to amenities such as end-of-trip facilities, common areas and building presentation can help older properties remain competitive against newly developed stock.
Management First: A Custodian Approach to Commercial Assets
Space Property Agency describes its commercial property strategy as a “Management First” approach, focusing on long-term asset performance rather than short-term transactions.
In a market as competitive as Surry Hills, commercial property management extends beyond rent collection. Tenant retention, building presentation and strategic asset positioning all play an important role in supporting long-term value.
Landlords frequently ask whether premium marketing campaigns are essential when leasing commercial space. Conrad Vass believes the objective is not simply achieving the highest possible rent but securing tenants who strengthen the long-term performance of the asset. A well-established business with a clear growth strategy may ultimately deliver greater value than a short-term occupier paying a marginal rental premium.
The agency continues to advise owners on how Metro connectivity influences leasing demand and asset positioning. Whether in Surry Hills (2010) or neighbouring Redfern (2016), the focus remains on maximising the advantages associated with proximity to major transport infrastructure.
Why Surry Hills (2010) Continues to Attract Businesses
The appeal of Surry Hills extends beyond office accommodation. Businesses are increasingly drawn to the broader workplace environment available to staff and clients.
The ability to meet clients on Commonwealth Street, access cafés along Crown Street and connect quickly to Sydney’s wider transport network contributes to the suburb’s ongoing appeal. These lifestyle and convenience factors continue to influence location decisions for many occupiers.
The regeneration of Central Station and the emergence of major projects such as Atlassian Tower have further strengthened the area’s position within Sydney’s innovation corridor. According to Space Property Agency, this has contributed to a noticeable shift in demand from traditional CBD office locations toward the city-fringe precincts surrounding Central Station.
For commercial property owners, the current market presents an opportunity to review how their assets align with modern occupier expectations. Building quality, workplace amenities and visibility within the leasing market continue to play an important role in attracting high-quality tenants.
Conclusion
The Surry Hills creative office market remains one of the strongest commercial precincts in Sydney’s city fringe. Low vacancy rates, sustained tenant demand and the ongoing influence of the Sydney Metro network continue to support leasing activity across the suburb.
Properties located close to Central Station and Metro infrastructure are benefiting from strong occupier demand, particularly among technology, media and creative businesses seeking well-connected workspace. At the same time, investment in building presentation, workplace amenities and active asset management remains important for owners looking to maximise long-term performance.
For tailored advice on commercial leasing, property asset management or maximising the performance of a commercial asset in Surry Hills (2010), contact Conrad Vass and the team at Space Property Agency.
Suite 13, Level 5, 35 Buckingham St, Surry Hills NSW 2010
0418 225 089
Follow Conrad on X: @VassConrad97853