DEXUS​ Property and Goodman Group revealed that several properties would be revalued because of stronger rents, high tenancy demand and improving yields from capital growth.

Agents predict the next 12 months will be just as active across the commercial real estate sector.

John Preece, head of office agency, Australia, at Knight Frank, said 2015 has been positive for the Sydney CBD office market amid improving occupier demand and limited supply that resulted in a vacancy reduction to 6.3 per cent, and a convergence of prime and secondary vacancy rates after a period of outperformance in secondary assets.

"Vacancy rates of less than 8 per cent are typically conducive to effective rental growth, indicating positive times for owners," Mr Preece said.

Goodman, which is the largest industrial landlord in the country, estimates a $600 million upgrade across its extensive portfolio.

Chief executive Greg Goodman said this would have a positive impact on the interim financial results, to be released in February.

Mr Goodman said property valuation gains would be over and above the operating profit for the half year and the group reaffirmed its forecast full year for 2016 operating earnings per security of 39.4¢, up 6 per cent on the 2015 financial year.

The valuation lift reflects strong capital inflows and transactional activity that have tightened capitalisation rates for industrial property around the world, as well as a significant contribution from higher valuations for urban renewal sites.

Goodman has a solid land bank in Australian that can be sold and redeveloped as mixed use urban sites, such as housing estates.

Mr Goodman has said the group is working through its urban renewal pipeline and continues to benefit from the evolution of urban renewal precincts and identification of new sites.

He adds that the urban renewal pipeline in Sydney alone is about 35,000 apartments.

That is in addition to the sale of 10,000 apartment sites completed or conditionally contracted to date.

"This is a particularly strong result on valuations and reflects the long-term decisions taken by the group over the last few years to improve the quality of the group's portfolio through asset recycling and reinvestment of capital into the development of high-quality and well-maintained assets," Mr Goodman said.

The strong office markets, particularly along the eastern seaboard, have led DEXUS Property Group to announce that 40 of its 102 properties, comprising 35 office properties and five industrial properties, have been externally valued as at December 31, 2015, reflecting 79 per cent of the portfolio.

The sector was further boosted by employment data last week, which showed the best rise for full-time workers in 28 years.

Employment rose by 71,400 in November after climbing by 56,100 in October; previously reported as a rise of 58,600 jobs.

Full-time jobs rose by 41,600 while part-time jobs were up by 29,700.

Economists had tipped a 10,000 fall in jobs.

Hours worked are up 2.8 per cent over the year.

The DEXUS lift was also against the backdrop of the proposed takeover of the Investa Office Fund, valued at about $2.5 billion.

If the proposed cash and scrip offer is successful, it will make DEXUS the largest office landlord in the country, with a portfolio of some of the best office towers in Sydney and Melbourne. Combined with internal valuations across the remainder of the portfolio, this has resulted in an estimated $450 million or 4.8 per cent increase on prior book values.

This valuation increase adds to the $40 million uplift booked on valuations as at September 30.

DEXUS chief executive Darren Steinberg said this valuation period had included some considerable capitalisation rate tightening flow through for quality properties, driven primarily from recent comparable market transactions, combined with leasing success.

"Continued strong investment demand for quality properties combined with a low interest rate environment are expected to result in cap rates remaining around these levels for the foreseeable future," he said.

He said the newly developed 5 Martin Place in Sydney had a 28 per cent increase in value, lifting the valuation by $30.4 million and resulting in a 62 basis point tightening in the property's capitalisation rate to 5.13 per cent.

Strong leasing success, tenant retention and growth in market rents at 1 Farrer Place in Sydney had contributed to a $108.3 million or 14.9 per cent increase in value and resulted in a 96 basis point tightening in the property's capitalisation rate to 5.29 per cent.