Melbourne Office Vacancy Still Highest in Australia
Melbourne CBD continues to record the highest office vacancy rate among major
capitals, at 18.9%.
Policy and pandemic effects still felt
The elevated vacancy level reflects the lasting impact of prolonged COVID lockdowns, which accelerated hybrid work adoption, as well as ongoing uncertainty around proposed work-from-home legislation. Leasing activity remains more cautious, particularly in secondary buildings, despite steady demand for premium space.
Still a tenant’s market – but only if you know how to play it
High vacancy and strong incentives mean it’s a tenant’s market – but the best deals still go to the best-prepared tenants. Without expert guidance, it’s easy to miss hidden costs or leave value on the table.
An independent tenant representative ensures you get the full benefit of market conditions and make informed, strategic choices.
New office supply to slow in 2O26
Melbourne added 1OO,OOO SQM of new office space in the second half of 2O25. However, the development pipeline is easing, with 14O,OOO SQM currently under construction, due by early 2O28.
Spec fit-outs: Do they fit you?
Many landlords are providing speculative fit-outs, from suites to whole floors, to attract tenants into vacant space. Over the past few years, we’ve guided many clients on spec fit-outs. The big question is always: “Is this fit-out fit right your company’s needs?” Often, we’ll identify potential deal-breakers that would otherwise go unnoticed.
Vacancy rates
Melbourne CBD – 18.9%
Melbourne Fringe – 18.0%
