National CBD office sublease activity returns to pre-pandemic levels

Australia’s office sublease volumes have declined for the ninth consecutive quarter in Q1 2026 to their lowest levels in five years. 

CBRE’s Q1 2026 Australian Office Sublease Barometer shows national sublease listings fell to 125,699 sqm, down 18.4%, compared to the end of 2025. 

Melbourne recorded the largest decrease in sublease volumes down 21.0%. Sublease volumes in Sydney, Brisbane and Perth also declined over the first quarter and volumes in these markets represent only 0.8%, 0.2% and 0.5% of each market’s stock respectively.

Adelaide was the only market which recorded an increase to sublease volumes in Q1 2026. However, the increase was only 1,310 sqm, and sublease volumes remain at 0.3% of overall stock. 

The report noted the average size of sublease listings continues to decline and is now at 1,166 sqm.

CBRE Associate Director of NSW Research Thomas Biglands said, “Sublease activity has now officially returned to pre-pandemic levels as elevated leasing demand and deflated supply look poised to drive significant tightening in CBD office vacancy rates. This result was particularly encouraging sitting alongside market views on the adoption of AI.”

The report highlighted that the Professional Services, Finance & Insurance, and Technology, Media and Telecommunications sectors continue to be the largest contributors to sublease availability.

CBRE’s Pacific Head of Office Leasing Tim Courtnall said, “We continue to see a recovery in all key office markets and we expect we will see very little increase in sublease volumes due to the overall state of our economy. We may see some additional sublease vacancy in markets however these will be more due to mergers and activity or strategic decisions rather than reduction in size or cost concerns.”