2026-03-05-莱坊-Canberra_Office_Market_March_2026_6页_1mb

Canberra Office Market Summary (March 2026)

Core Market Performance

Canberra's office market has shown resilience, with the overall vacancy rate dropping to 10.2% in January 2026, marking the lowest level among capital cities since mid-2021. This performance is underpinned by solid occupier demand and stable yields, which have contributed to positive net absorption of 16,923 sqm for the year. The annual net face rental growth was 5.1%, with prime net face rents averaging $485/sqm and secondary rents rising to $379/sqm.

The prime yield in the Civic and Parliamentary precincts remained stable at 7.1%, while secondary yields averaged 8.4%. This yield stability, combined with rental growth, has led to a renewed capital value uplift, with prime capital values increasing by 6.1% and secondary values rising by 5.6% over the year.

Vacancy Rates by Precinct

The Parliamentary precinct continues to maintain very low vacancy at 1.7%, while Civic and Town Centres have seen a decline in vacancy rates, reflecting strong demand and limited supply.

Development Pipeline

The development pipeline is robust and is expected to increase the availability of prime office space in key locations. In 2025, 53,789 sqm of new supply was delivered to the market, with two projects reaching practical completion:

• 9-11 Molonglo Dr, Canberra Airport (19,703 sqm) by Capital Airport Group
• 1 City Hill, Civic (34,086 sqm) by Morris Property Group

Looking ahead, several major projects are scheduled for completion in 2026 and 2027:

• 62 Constitution Ave, Campbell (16,000 sqm) by Amalgamated Property Group, with Telstra as a major tenant.
• 15 Sydney Avenue, Barton (33,000 sqm) by Charter Hall, leased to the Commonwealth ATO.
• 1A Constitution Place, Civic (15,500 sqm) by Capital Airport Group, with Clayton Utz, EY, JLL as tenants.
• 19 National Circuit, Barton (19,817 sqm) by Cromwell Corporation, fully committed by the Commonwealth.

These developments are expected to support occupier demand and reduce long-term vacancy pressures, especially in the core locations.

Transactional Activity

In 2025, the total investment deal volume reached $396 million, driven by domestic capital. Notable transactions include:

• Amalgamated Property Group acquired Anzac Park West (50 Constitution Ave, Parkes) for $72.5 million, fully leased to the Department of Defence.
• Sirius Building (23 Furzer St, Phillip) was sold by Mirvac to LDR Capital for $305 million, transacting at a core market yield of 7.8%, with the Department of Health, Disability and Ageing as the sole tenant.

These transactions reflect a preference for assets with secure public administration tenants, providing long-term income stability.

Recent Tenant Commitments

Several new tenant commitments have been recorded in the first half of 2025, including:

These commitments indicate ongoing demand from both public and private sector tenants, contributing to the positive absorption levels in the market.

Key Statistics

• Overall vacancy rate: 10.2%
• Annual net absorption: 16,923 sqm
• Annual face rental growth: 5.1%
• Prime net face rent: $485/sqm
• 2025 deal volumes: $396 million
• New supply in 2026: 64.5k sqm
• Prime yield spread: 164 bps between Civic/Parliamentary and Town Centres

Conclusion

The Canberra office market is currently experiencing strong demand, low vacancy, and stable yields, which have supported positive rental growth and capital value recovery. The development pipeline is active and expected to increase prime space availability in core areas, while domestic capital continues to drive investment activity, particularly in properties with secure public tenants. The market remains resilient, with occupier demand and investment confidence showing no signs of waning.