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Australia CBD Office Occupancy Brief

September 20, 2023 5 Minute Read

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Despite challenging conditions brought on by COVID lockdowns and structural shifts in office usage patterns, recent data suggests that Australian CBD office markets are coming out of this downcycle in a much stronger position than general sentiment would suggest.


         As of Q2 2023, 62% of Australian CBD office properties had occupancy rates of greater than 90%. These assets were well-occupied and in healthy leasing positions. An additional 15% of properties in these CBD markets had occupancy rates between 80% and 90%.

         The strength of the market was even more evident when stratifying the occupancy baskets further. Over 52% of office properties in the study had occupancy rates above 95% as of Q2 2023.

         The share of well-occupied CBD office properties was fairly consistent across each of the Australian capital cities at the time of the study. As of mid-year 2023, Canberra boasted the highest share of well-occupied office properties at 66%, followed by Sydney at 65%, Adelaide at 64%, Brisbane at 62%, Melbourne at 61%, and Perth at 54%.


The findings of this study suggest that the large majority of CBD office assets across Australia are in a fairly strong leasing position, and that elevated CBD vacancy rates are being driven by a relatively small number of assets. While elevated vacancy rates will remain a challenge over the near term, well situated and high quality office properties are still performing well at this time.