Suburban office markets throughout Sydney are being fundamentally reshaped as red-hot demand for residential property sees a mass withdrawal of old office stock for residential conversions, a leading real-estate services firm says.

In its latest forecasts, CBRE says office markets in Epping, Burwood and Hurstville will all shrink by at least a quarter over the next four years as at least 180,000 square metres worth of stock is taken off the market in order to make way for multi-unit residential complexes, placing…