Market Pulse CBD June-26 pages - Flipbook - Page 17
Market Pulse June 2026
Outlook
A total 171,229sqm of new Premium office space (3.2% of CBD stock) is currently under construction and due to
be delivered by the end of 2027. The supply outlook beyond 2027 is thin with the first new addition likely to be
Milligan Group / Cbus Property’s Halo project, expected to deliver approx. 42,000sqm of office NLA in 2030.
Despite mediocre underlying tenant enquiry (excluding Westpac) tenant demand is expected to remain robust,
underpinned by a continuation of centralisation into the CBD as well as expansion of existing CBD tenants.
The expected new supply drought over 2028-2032 will provide a ceiling on vacancy rates over the medium term and
create competitive tension amongst larger tenants and impetus for continued effective rental growth in prime
grade assets.
The near-record rental gap between Premium and A grade space has begun to narrow and expected to continue
with stronger growth in A grade rents as tenants seek value and are presented with more opportunities in A
grade space. With the economic rents required to deliver new supply having risen significantly, rents for existing
stock will also rise, and vacancy rates fall, provided net absorption remains positive. The current low quantum of
available sublease space (even with the Atlassian space) is not impeding rental growth across the market.
RESEARCH CONTACT
Lok So
Research Director
+61 421 283 865
lok.so@cadigal.com.au
17 | cadigal.com.au
