Market reports

The Adelaide CBD office market continues to demonstrate resilient occupier demand despite a recent increase in overall vacancy levels. As at January 2026, the CBD vacancy rate increased to approximately 15.5%, primarily reflecting the delivery of new office developments and associated backfill space entering the market. Importantly, the rise in vacancy has occurred alongside strong positive net absorption throughout 2025, indicating that demand remains healthy and that the increase is largely supply-driven rather than a consequence of weakening leasing activity.

The Brisbane CBD office market continues to outperform most Australian CBD markets, supported by strong occupier demand, favourable economic fundamentals and a relatively constrained future supply pipeline. As at January 2026, the overall CBD vacancy rate increased modestly to 11.8%, up from 10.7% in July 2025. The increase was largely attributable to the completion of new office developments and the release of associated backfill space, rather than any material deterioration in underlying tenant demand.

The Sydney CBD office market has stabilised following the significant supply additions delivered throughout 2024 and 2025, with overall vacancy remaining relatively unchanged at 13.8% as at January 2026, compared with 13.7% in July 2025. While vacancy remains elevated relative to long-term averages, the market has recorded positive net absorption, supported by improving occupier demand and limited new supply entering the market.

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.