Sydney’s next supply cycle from 2019 will bring a wave of new supply across Sydney’s office markets (figure 1). Recent examples of the supply pipeline ramping up have not ended well – look no further than sharp declines in effective rents in Brisbane (2013-2014) and Perth (2014-2015) that occurred around spikes in supply. While vacancy is forecast to increase over the next supply cycle, Sydney is a long way from seeing the rental declines witnessed in Brisbane and Perth. In this report, we discuss the possibility of an upside surprise for Sydney’s office market over the next supply cycle.