Melbourne CBD Office Figures Q4 2025

Key Points:

• Melbourne’s CBD has experienced its strongest period of absorption since H2 2022, with a recorded +28,029sqm. This also equates to the strongest 12-month net absorption recorded since before the pandemic, specifically 2018, when absorption exceeded 150,000sqm.
• The major office completion of 17 Bennetts Lane was recorded in Q4 2025. Forward annual supply remains subdued, with only 25,000sqm of new stock expected between 2027 and 2030, representing a historic low for the Melbourne market.
• Vacancy in Melbourne has risen to 19.0%, representing a 103bps increase from H1 2025. The increase in vacancy is attributed to the c.100,000sqm of net supply recorded in H2 2025.
• Prime net face rents increased by 1.0% over Q4 2025. Prime effective rents experienced similar growth, supported by stabilising incentives across most precincts. 
• Investment activity in Q4 totalled approximately $270m, with year-to-date activity totalling over $1.2 billion AUD, with renewed confidence among offshore buyers.