Market reports

Melbourne remains one of Australia's most tenant-favourable office markets. Vacancy has eased only marginally to 18.9%, still the nation's highest, while incentives sit near record levels. With two major towers nearing completion and a thinning pipeline, this leverage is expected to narrow as the market tightens from 2029.

Perth remains a tenant-favoured office market, but conditions are tightening. CBD vacancy has fallen to 15.4%, enquiry activity has more than doubled and Premium-grade availability is approaching tighter levels. With limited meaningful new supply expected for the next 3–4 years, occupiers still have negotiating leverage today - but delaying decisions could materially reduce choice.

The Sydney CBD office market has stabilised following the significant supply additions delivered throughout 2024 and 2025, with overall vacancy remaining relatively unchanged at 13.9% as at July 2026, compared with 13.8% in January 2026. The market has recorded positive net absorption, supported by improving occupier demand and limited new supply entering the market.

The Brisbane CBD office market continues to outperform most Australian CBD markets, supported by strong occupier demand, favourable economic fundamentals and a relatively constrained future supply pipeline.

The Adelaide CBD office market continues to demonstrate resilient occupier demand with the vacancy rate at 14.5%. Following the significant development cycle over recent years, Adelaide’s future supply pipelines is becoming increasingly constrained.

The Adelaide CBD office market continues to demonstrate resilient occupier demand despite a recent increase in overall vacancy levels. As at January 2026, the CBD vacancy rate increased to approximately 15.5%, primarily reflecting the delivery of new office developments and associated backfill space entering the market. Importantly, the rise in vacancy has occurred alongside strong positive net absorption throughout 2025, indicating that demand remains healthy and that the increase is largely supply-driven rather than a consequence of weakening leasing activity.

The Brisbane CBD office market continues to outperform most Australian CBD markets, supported by strong occupier demand, favourable economic fundamentals and a relatively constrained future supply pipeline. As at January 2026, the overall CBD vacancy rate increased modestly to 11.8%, up from 10.7% in July 2025. The increase was largely attributable to the completion of new office developments and the release of associated backfill space, rather than any material deterioration in underlying tenant demand.

The Sydney CBD office market has stabilised following the significant supply additions delivered throughout 2024 and 2025, with overall vacancy remaining relatively unchanged at 13.8% as at January 2026, compared with 13.7% in July 2025. While vacancy remains elevated relative to long-term averages, the market has recorded positive net absorption, supported by improving occupier demand and limited new supply entering the market.