Market Report | Q1 2025 | Office

The vacancy rate of Melbourne's CBD office buildings remains historically high, and workers' return to the office continues to lag other capital cities. The underlying picture is, however, more complex. Vacancy levels of prime-grade assets where landlords have invested in building amenities and services in sought-after locations, such as the Eastern core, are much lower than the vacancy levels of ageing buildings in less sought-after precincts. This gap is widening even further when considering sub-markets such as Docklands, Southbank and St Kilda Road.