Melbourne CBD Office Figures Q3 2024

Key Points: 

• Leasing demand in Melbourne’s CBD, measured through net absorption remains negative, with 6-month net absorption of -15,435sqm recorded. Negative net absorption was partially offset by strong positive demand for Premium grade office space (+2,116sqm).
• There was no major office supply completions over Q3 2024. Melbourne’s office supply pipeline remains limited until 2026, with little pre-commitment activity in the forward pipeline.
• Melbourne CBD’s overall vacancy rate ended H1 2024 at 18.0%. This figure represented an increase of 157bps from H2 2023. Vacancy continues to bifurcate across precincts as tenant preference becomes more pronounced.
• Prime net face rents continue to see growth across most precincts. Prime effective rents experienced positive year-on-year growth for the first quarter since Q1 2022.
• Melbourne CBD office sales saw significant activity in Q3 2024, with c.550m of assets currently exchanged and awaiting settlement.