Market Pulse CBD June-26 pages - Flipbook - Page 5
In Summary
171,229sqm of new supply (3.2% of total stock) is
under construction across three projects and due to be
delivered by end-2027. No new supply will arrive over
2028-2029 with the next development likely to be the Halo
project (approx. 42,000sqm) in 2030.
Positive net absorption was recorded over 2025 with
the 21,657sqm total just 58% of the long-term annual
average. Active tenant enquiry, excluding Westpac’s
extraordinarily large requirement, continues to be
subdued.
The overall vacancy rate remains high at 13.8%, and
tracked sideways over H2 2025, the figure remaining the
market’s highest in 31 years (since Jan-95).
The amount of available sublease space continues to
fall with the 40,711sqm total the lowest since Sep-18 and
having negligible impact on the market.
Face rents in the CBD rose 3.7%-5.1% (12 months to Mar26) slightly lower than the previous quarter. Net effective
rents in Premium grade have recovered to pre-pandemic
peaks but A and B grades have only recovered to about
85% of respective peaks.
The near-record rental gap between Premium and A
grade space (for both face and effective rents) has begun
to narrow and expected to continue with A grade rents
growing relatively stronger over the near term.
