Canberra CBD Office Figures Q1 2025

Key Points: 

• Office leasing demand remained steady across Canberra over Q1 2025. The market saw overall net absorption of 26,528 sqm over 2024 and activity levels have held up over the first few months of the new year.
• Canberra is forecast to see 109,485 sqm of new office supply delivered in the coming year and an average of 99,463 sqm of new office space per annum from 2025 to 2028.
• Canberra’s overall office vacancy rate ended 2024 at 9.2%. This was the tightest figure of any Australian capital city.
• Gross rental rates increased over Q1 2025 while incentives held stable. This resulted in net effective rents increasing by 1.2% over the quarter.
• The Canberra office investment market started 2025 on a quiet note with no transactions closing over the period. Prime Civic and Non-Civic yields ended the year at 7.6% and 7.9%, respectively, after increasing by 25 bps.