2026-02-18-莱坊-Melbourne_CBD_Office_Market_February_2026_10页_1mb

Melbourne CBD Office Market Report Summary (February 2026)

Core Content

The Melbourne CBD office market showed resilience in 2025 with strong net absorption, marking the highest annual total since 2018. Despite a rise in vacancy due to the completion of several largely vacant refurbished assets, the fundamentals of the market remain positive. A significant contraction in new developments is expected, which will support future rental growth.

Key Market Indicators

• Vacancy Rate: Rose to 19.0% in H2-2025, with the Eastern Core vacancy increasing to 18.0%.
• Prime Yields: Softened 3 bps to 6.76%, while secondary yields dropped 15 bps to 7.82%, creating a 107 bps spread, a 10-year high.
• Net Absorption: Reached 29,475 sqm in 2025, the highest since 2018, with prime net absorption at 40,070 sqm and secondary at -10,595 sqm.
• Prime Rental Growth: Increased by 5.2% in 2025, the highest in three years, with the Eastern Core seeing a 10.2% increase.
• New Supply: 100,118 sqm of new supply completed in 2025, with 4 new refurbishments and 2 developments. Supply is expected to be strong in 2026, but will slow significantly in 2027 due to higher interest rates and costs.

Market Trends

• Flight-to-Quality: Continued with prime space being in higher demand, while secondary space saw net losses.
• Leasing Activity: Increased in 2025 with 210 lease briefs released, totaling over 300,000 sqm. Professional Services and Finance & Insurance were the most active sectors.
• Tenant Migration: Increased movement into the CBD from suburban areas, driven by incentives and favorable market conditions. Notable relocations include Jetstar to Docklands and NAB renewing its lease at 700 Bourke St.

Economic Factors

• Infrastructure Development: The completion of the Metro Tunnel in late 2025 boosted connectivity, improving accessibility and footfall.
• Major Events: The 2026 Australian Open and F1 Grand Prix enhanced Melbourne's international appeal, contributing to economic benefits and office market performance.
• Population Growth: Victoria recorded net population growth of 123,507 people year to June 2025, with strong GDP growth forecast for 2026 and 2027.

Southbank Update

• Rent Stability: Prime net face rents in Southbank remained flat q/q but increased 2.5% y/y, with a 8.5% gap compared to CBD average.
• Vacancy Rates: Southbank has the third-lowest total vacancy rate at 15.0%, with the lowest sub-lease vacancy at 0.3%.
• Net Absorption: Reached 7,434 sqm in 2025, the highest since post-pandemic, driven by tenant relocations and limited new supply.

Investment Market

• Investment Volumes: Increased by 33% in 2025, supported by major CBD transactions such as 750 Collins St, Flinders Gate, and 357 Collins St.
• Buyer Activity: Cross-border institutions and syndicates were the most active buyers, followed by private investors. REITs and institutions faced constraints due to tax issues.
• Yield Trends: Prime yields averaged 6.8%, with a 24 bps decline y/y, while secondary yields dropped 36 bps. As yields stabilize, investment activity is expected to rise.

Supply Pipeline

• New Developments: Three developments completed in 2026, with more expected in 2027 and 2029.
• Refurbishments: Several major refurbishments completed in 2025, including 111 Bourke St and 800 Collins St, which contributed to higher vacancy rates.

Conclusion

The Melbourne CBD office market remains strong, supported by robust demand and economic factors. While vacancy rates are expected to rise in the short term due to new supply, the contraction in development will support rental growth in the medium term. Southbank continues to outperform other areas with lower vacancy and stable rents. The market is showing signs of recovery, with increased net absorption and tenant migration, reinforcing its fundamentals.