The rush to fill this vacancy saw incentive levels soar beyond the normal 10 per cent to upwards of 25 per cent to 30 per cent, more than three times the vacancy rate.

With current vacancy levels in the 4 per cent range and tracking lower, one would expect incentive levels to return to their normal levels of about 8-10 per cent, however, incentives have remained stubbornly high at between 18 per cent to 24 per cent for new space or 12 per cent to 15 per cent for existing tenancies.

But if this is a landlord’s market with vacancy rates at 4 per cent and tracking lower, why are incentives still so high?

In Sydney, the issue is demand, or absence thereof. Behind every leasing transaction, there isn’t much else.

Unlike the B-Grade boom of 2017 when tenants were competing for space in the wake of massive metro-inspired office building withdrawal, there doesn’t seem to be such a catalyst.

Tenants are finding they can make do with their existing space; expansion space, if required, can be leased when needed in the many co-working offices throughout the city.

New technology and more efficient office configurations also means less space is needed. All these factors are converging to stifle demand, further highlighting the fact that even though this looks like a landlord’s market with tight supply and low vacancy, at a deal-by-deal level, incentives are still stubbornly high.

Until we see a more positive demand environment, landlords will look at more creative ways to attract and hold their tenants. Incentives, while stubbornly edging lower, appear here to stay.

Michael Cook is the group executive at the Investa Property Group.