“We continue to see good levels of demand across smaller and larger occupiers of space, with the leasing momentum seen in 2021 continuing this year,” he said.

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“The continued rebound in demand likely means that effective rents have bottomed out.”

One feature of the new space requirements is to offer staff COVID-19 safe amenities such as larger collaborative spaces, more gaps between desks and wellness zones.

As a result, those looking for new digs are seeking larger footprints that are generally found in the newer, higher-quality office towers.

“Reflecting the continued flight-to-quality trend, premium and A-grade office space had the highest levels of tenant inquiry,” Mr Hamilton said.

The Property Council of Australia’s latest Office Occupancy survey shows a consistent lift in workers returning to the office in Australia’s CBDs, with Sydney recording 18 per cent occupancy in February 2022, in contrast to 7 per cent in January.

Property Council’s NSW executive director Luke Achterstraat said the fast turnaround increase in February was a clear indication that “Sydney was on a road of recovery”.

“It is encouraging to see occupancy rates almost tripling in February, and we expect to see further sharp rises ahead with many government restrictions now behind us,” Mr Achterstraat said.

JLL’s office leasing NSW director, Justin Hayes adds net leasing deals in the Sydney CBD totalled 10,800 square metres in the fourth quarter of 2021, which is the third consecutive quarter of positive demand.

“The recent opening of international borders to fully vaccinated travellers in late February will no doubt further boost activity in the Sydney CBD, particularly for organisations looking to establish a local office in the market,” Mr Hayes said.

“There is an undeniable desire from businesses to be back in their offices.”

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