Demand for Prime office space is rising amid solid employment growth and a stronger economic outlook, while lower interest rates and stabilising asset prices are boosting investor sentiment.
Key Highlights:
- Demand for Prime office space strengthened over the six months to July 2025, driven mostly by take-up of Premium space.
- New supply outpaced net absorption over this period leading to a slight increase in vacancy nationally but Brisbane and Adelaide bucked the trend.
- All major CBD markets recorded face rental growth over the year to June, led by Brisbane.
- Office investment activity slowed in Q2, although annual deal volume remains well above early 2024 lows.
- Investors are focused on Sydney, with the city accounting for 70% of office acquisitions nationally YTD.