Market reports

The February 2026 PCA Perth Office Market Update confirmed WA’s strong economic and demographic growth with the mining sector providing most of the Tenant demand. That position has not changed to date despite the extraordinary events taking place in the middle East which has added uncertainty and has most likely delayed some decisions.

Melbourne’s CBD office vacancy rate has risen to 19%, the highest of any Australian capital city. The increase is supply-led, however, driven by the final wave of new completions reaching the market rather than by any weakening in tenant demand.

While the Adelaide CBD vacancy rate has edged higher to XX%, strong net absorption of more than 33,000 sqm in the second half of 2025, together with the delivery of new developments, indicates that the increase is largely driven by new supply rather than a weakening in demand.

Brisbane’s CBD vacancy rate remains relatively low at 11.8% as at January 2026, although this is an increase from 10.7% in July 2025. The rise largely reflects the completion of a few buildings and the release of associated backfill space, meaning the increase is primarily supply-driven rather than a sign of weakening demand.

The Sydney CBD office market continues to soften, with overall vacancy having increased slightly to 13.8%, up from 13.7% in July 2025 and remaining above the 10-year average. This has led to positive absorption being recorded in Sydney for the second consecutive year.

Melbourne’s CBD office market continues to record the highest vacancy rate nationally, with overall vacancy rising to 19% in the second half of 2025. The market is increasingly characterised by a two-tier dynamic.

The February 2026PCA Perth Office Market Update has confirmed WA’s strong economic and demographic growth with the mining sector providing the majority of Tenant demand. According to the PCA State Final Demand has been the highest in all States for the past 5 years averaging almost 5%pa and WA is expected to be the highest over the next 5 years at just over 3% pa.

The vacancy rate of Melbourne’s CBD office buildings still remains relatively high, with the pace of workers returning to the office continuing to lag behind other Australian capital cities.