Melbourne CBD Office Figures Q2 2026

Key Points:

• Melbourne’s CBD has recorded the strongest level of 12-month net absorption nationally as of H1 2026, with 54,808sqm recorded.
• The practical completion of 7 Spencer Street was recorded in Q2 2026. Approximately 100,000sqm of backfill space is set to enter the market over 2027-2028. The next new supply wave is now expected to emerge from 2032 at the earliest, with very few developments likely to commence construction in the short term.
• Vacancy in Melbourne has decreased to 18.9%, representing a 5bps decrease from H2 2025.
• Prime net face rents increased by 0.4% over Q2 2026. Prime effective rents experienced similar growth, supported by stabilising incentives across all precincts.
• One major CBD transaction was recorded in Q2 2026, representing $54m. Yields held stable over the quarter. Slight yield expansion is expected over H2 2026.