Dexus, the country's largest office landlord, expects to deliver 5 per cent growth in its distributions in the 2019 financial year even while sounding a note of caution for uncertainty ahead in the market.

The squeeze on Sydney space in particular was a big driver in Dexus' earnings as the landlord collected better rents from tenants. As ageing leases struck in softer markets ended and fresh leases were signed, Dexus booked a bumper 18 per cent spread between the old and the new.