> **来源：[研报客](https://pc.yanbaoke.cn)** # Canberra Office Market March 2026 Lowest vacancy rate amongst all capital cities since mid-2021. Click here to subscribe # Key Insights Resilient occupier demand, low vacancy and stable yields underpin market performance. Naki Dai Senior Analyst, RESEARCH & CONSULTING 10.2% Overall vacancy Lowest vacancy rate amongst all capital cities since mid-2021. 5.1% Annual face rental growth Prime net face rents average $485/sqm in Civic and Parliamentary precincts. 10.1k Net absorption in H2 2025 Sustained tenant demand drives positive absorption levels. 7.1% Yields hold firm Prime yields in Civic and Parliamentary precincts averaged $7.1\%$ . 64.5k Sqm of new supply in 2026 Development pipeline to increase availability of prime space. \$396m 2025 deal volumes Domestic capital drives investment activity. Canberra Office Market Indicators – January 2026 <table><tr><td>Grade</td><td>Total Stock sqm</td><td>Vacancy Rate %</td><td>Annual Net Absorption sqm</td><td>Annual Net Additions sqm</td><td>Average Gross Face Rent $/sqm</td><td>Average Incentive %</td><td>Core Market Yield %*</td></tr><tr><td>A Grade</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Civic (City)</td><td>523,526</td><td>13.0</td><td>18,666</td><td>34,086</td><td>604</td><td>28.6%</td><td>6.75 - 7.25</td></tr><tr><td>Parliamentary</td><td>287,889</td><td>1.7</td><td>3,485</td><td>0</td><td>600</td><td>27.7%</td><td>7.00 - 7.50</td></tr><tr><td>Town Centers</td><td>258,547</td><td>5.0</td><td>11,800</td><td>0</td><td>477</td><td>30.9%</td><td>8.50 - 9.00</td></tr><tr><td>Other</td><td>420,512</td><td>9.4</td><td>3,520</td><td>19,703</td><td></td><td></td><td></td></tr><tr><td>Secondary</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Civic (City)</td><td>237,961</td><td>9.9</td><td>-4,494</td><td>-2,839</td><td>488</td><td>30.1%</td><td>8.50 - 9.00</td></tr><tr><td>Parliamentary</td><td>162,251</td><td>2.0</td><td>114</td><td>-3,350</td><td>502</td><td>30.0%</td><td>8.25 - 8.75</td></tr><tr><td>Town Centers</td><td>181,985</td><td>31.8</td><td>-17,717</td><td>0</td><td>392</td><td>31.2%</td><td>9.75 - 10.25</td></tr><tr><td>Other</td><td>386,393</td><td>10.9</td><td>1,549</td><td>0</td><td></td><td></td><td></td></tr><tr><td>Total Market</td><td>2,459,064</td><td>10.2</td><td>16,923</td><td>47,600</td><td></td><td></td><td></td></tr></table> Source: Knight Frank Research/PCA \* assuming WALE 5 years Parliamentary comprises Barton, Parkes and Forrest office precincts; Town Centres comprise Phillip, Tuggeranong and Belconnen office precincts; Other includes remaining PCA sub localities # Solid demand supports rental growth # SOLID DEMAND KEeps VACANCY AT THE LOWEST AMONG CAPITAL CITIES Overall vacancy in Canberra declined in the second half of 2025, to $10.2\%$ in January 2026. This was supported by positive net absorption of 10,129 sqm in H2 2025, bringing the annual net absorption to 16,923 sqm. Vacancy remains in line with the market's 10-year average and represents the lowest vacancy rate among capital cities since mid-2021. Prime vacancy in Civic declined from $16.2\%$ to $13.0\%$ over the six months to January 2026, supported by positive net absorption of 16,796 sqm. While this vacancy is well-above its long-term average, it is notable given the substantial supply influx since 2024, which added more than 70,000 sqm of new space to the market. The Parliamentary precinct remained extremely tight, with prime vacancy holding at $1.7\%$ in January 2026. Secondary vacancy levels measured $9.9\%$ in Civic and $2.0\%$ in the Parliamentary precinct. # HEALTHY DEVELOPMENT PIPELINE AHEAD Total office stock stood at 2,549,064 sqm, with 53,789 sqm of new supply delivered to the market in 2025. Two projects reached practical completion during the year: Capital Airport Group's 9-11 Molonglo Dr, Canberra Airport (19,703 sqm), and Morris Property Group's 1 City Hill, Civic (34,086 sqm). Looking ahead, the development pipeline remains active. 62 Constitution Ave, Campbell (16,000 sqm) and 15 Sydney Ave, Barton (37,000 sqm) are both scheduled for completion in H1 2026. Construction is also well advanced at 1A Constitution Place, Civic (15,500 sqm), which has already reached over $90\%$ pre-commitment and is expected to complete in H2 2026. Additionally, 19 National Circuit, Barton (19,817 sqm), fully committed by the Commonwealth, is forecast for completion in 2027. The forward pipeline is expected to provide occupiers with increased access to prime office space in the core locations that have historically experienced limited availability. # SOLID RENTAL GROWTH Solid rental growth in the Civic and Parliamentary precincts continued over the year to January 2026, with prime net face rents increasing by $5.1\%$ to average $\$485/\mathrm{sqm}$ ( $\$602/\mathrm{sqm}$ , up $5.0\%$ y/y). Similarly, secondary net face rents in Civic and Parliamentary precincts rose by $4.0\%$ over the same period to $\$379/\mathrm{sqm}$ ( $\$495/\mathrm{sqm}$ gross face, up $3.6\%$ y/y). Incentives edged up slightly to $28.1\%$ for prime space, while secondary incentive measure $30.0\%$ . Canberra vacancy major precincts * Per six month period $(\%)$ , by grade Canberra office supply additions and withdrawals Total market, per six months period ('000 sqm) Prime net face rents and incentives Parliamentary & civic average, $/sqm, \%$ # Transactional activity improving # DOMESTIC CAPITAL DRIVING TRANSACTIONAL ACTIVITY Investment activity totalled $396 million in 2025 across three buildings. In H2 2025, Amalgamated Property Group acquired Anzac Park West (50 Constitution Ave, Parkes) from EG Funds for$ 72.5 million. The building is fully leased to the Department of Defence on a 10-year term expiring Dec 2027. The acquisition consolidated APG's ownership of both the Anzac Park West and East blocks. In addition, Sirius Building (23 Furzer St, Phillip) was sold by Mirvac to LDR Capital for $305 million, transacting at a 7.8% core market yield. The building is fully leased to the Department of Health, Disability and Ageing, with a WALE of 9.1 years to provide long-term income certainty. These transactions highlight the preference of domestic capital for assets underpinned by public administration tenants, reflecting a focus of income secure assets. # FIRM YIELDSTO SUPPORT CAPITAL VALUE RECOVERY The average office yields in the Civic and Parliamentary precincts have remained stable since mid-2024, averaging $7.1\%$ for prime and $8.4\%$ for secondary. As yields remain firm, positive rental growth has led to a renewed capital value uplift, with prime capital values increasing by $6.1\%$ over the year and secondary values rising by $5.6\%$ . This marks a return to capital value growth, following the recovery from the valuation declines experienced during the yield softening cycle from 2022 to early 2024. Across Town Centres, yields have similarly remained unchanged since 2024, averaging $8.7\%$ for prime and $9.9\%$ for secondary. The current prime yield spread between Civic and Parliamentary and Town Centres stands at 164 bps. Canberra office sales $10m+ By purchaser (\$m), domestic v offshore Canberra office core market yield Prime v secondary, blended average yield $(\%)$ Recent significant sales <table><tr><td>Property</td><td>Price $ m</td><td>Core Market Yield %</td><td>NLA sqm</td><td>$/sqm NLA</td><td>WALE</td><td>Purchaser</td><td>Vendor</td><td>Sale Date</td></tr><tr><td>23 Furzer St, Phillip</td><td>305.0</td><td>7.8</td><td>46,029</td><td>10,410</td><td>9.1</td><td>LDR Capital</td><td>Mirvac</td><td>Dec-25</td></tr><tr><td>4 Mort St, Canberra</td><td>18.0</td><td>8.5</td><td>5,422</td><td>3,320</td><td>1.0</td><td>AEGIS Investment</td><td>Gladiator Investments</td><td>Apr-25</td></tr><tr><td>2 Constitution Ave, Canberra</td><td>90.1</td><td>7.9</td><td>19,465</td><td>4,626</td><td>3.2</td><td>Growthpoint</td><td>ISPT</td><td>Nov-24</td></tr></table> Source: Knight Frank Research Recent tenant commitments <table><tr><td>Occupier</td><td>Property</td><td>Precinct</td><td>Size sqm</td><td>Face Rent $/sqm</td><td>Term yrs</td><td>Start Date</td></tr><tr><td>Built ~</td><td>14 Moore St</td><td>City</td><td>247</td><td>515</td><td>5</td><td>Nov 25</td></tr><tr><td>CoA (Australian Centre for International Agriculture Research) ~</td><td>38 Sydney Ave</td><td>Forrest</td><td>1,453</td><td>515</td><td>12</td><td>Aug 25</td></tr><tr><td>Orbis Operations ~</td><td>15 National Cct</td><td>Barton</td><td>326</td><td>550</td><td>5</td><td>Jun 25</td></tr><tr><td>CoA (NDIS Quality and Safeguards Commission) ~</td><td>21-23 Marcus Clarke St</td><td>City</td><td>1,405</td><td>520 (g)</td><td>7</td><td>Jun 25</td></tr><tr><td>CoA (DVA) ~</td><td>18 Marcus Clarke St</td><td>City</td><td>13,650</td><td>520 (g)</td><td>15</td><td>May 25</td></tr><tr><td>BDO Australia ~</td><td>5 Farrell Place</td><td>City</td><td>865</td><td>540 (g)</td><td>5</td><td>Mar 25</td></tr></table> $\sim$ Direct (g) Semi Gross Source: Knight Frank Research Canberra major office supply <table><tr><td>Property</td><td>Area (sqm)</td><td>Developer</td><td>Major tenants</td><td>Stage</td><td>Timing</td></tr><tr><td>9-11 Molonglo Drive, Airport</td><td>19,703</td><td>Capital Airport Group</td><td></td><td>Complete</td><td>H1 2025</td></tr><tr><td>1 City Hill, Civic (One City Hill)</td><td>34,086</td><td>Morris Property Group</td><td>Spec</td><td>Complete</td><td>H1 2025</td></tr><tr><td>62 Constitution Ave, Campbell (Anzac Park East)</td><td>16,000</td><td>Amalgamated Property Group</td><td>Telstra</td><td>Under Construction</td><td>H1 2026</td></tr><tr><td>15 Sydney Avenue, Barton</td><td>33,000</td><td>Charter Hall</td><td>Commonwealth ATO</td><td>Under Construction</td><td>H1 2026</td></tr><tr><td>1A Constitution Place, Civic (Constitution Place)</td><td>15,500</td><td>Capital Airport Group</td><td>Clayton Utz; EY; JLL</td><td>Under Construction</td><td>H2 2026</td></tr><tr><td>19 National Circuit, Barton (Centenary House)</td><td>19,817</td><td>Cromwell Corporation</td><td>Commonwealth</td><td>Under Construction</td><td>H1 2027</td></tr><tr><td>8-10 Petrie Plaza, Civic</td><td>5,000</td><td>NDH</td><td></td><td>Under Construction</td><td>H2 2027</td></tr><tr><td>10-12 Brisbane Ave, Barton</td><td>14,000</td><td>Willemsen Group</td><td></td><td>Under Construction</td><td>2028+</td></tr><tr><td>40 Brisbane Ave, Barton</td><td>16,500</td><td>Chase Group / Kenyon Investments</td><td></td><td>Mooted</td><td>/</td></tr><tr><td>84-86 Giles St, Kingston</td><td>4,658</td><td>KG Capitol</td><td></td><td>Mooted</td><td>/</td></tr><tr><td>2 Darling St, Barton</td><td>10,900</td><td>DOMA Group</td><td></td><td>Mooted</td><td>/</td></tr><tr><td>Section 96, Civic</td><td>37,000</td><td>QIC</td><td></td><td>Mooted</td><td>/</td></tr><tr><td>50 Kent Street, Deakin</td><td>8,500</td><td>Evri Group</td><td>Spec</td><td>Mooted</td><td>/</td></tr></table> Source: Knight Frank Research We like questions, if you've got one about our research, or would like some property advice, we would love to hear from you. Click here to subscribe Research & Consulting Marco Mascitelli +61290366656 Marco.Mascitelli@au.knightfrank.com Capital Markets Nathan Dunn +61488216406 Nathan.Dunn@au.knightfrank.com Valuations & Advisory Martin Elliott +61407660375 Martin.Elliott@au.knightfrank.com Research & Consulting Ben Burston +61290366756 Ben.Burston@au.knightfrank.com Research & Consulting Naki Dai +61290366673 Naki.Dai@au.knightfrank.com Asset Management Rebecca Jakubaszek +61411407141 Rebecca.Jakubaszek@au.knightfrank.com # Recent Research Sydney CBD Office Market Australian Capital View Australian Retail Review Australian Retail Review