Canberra Office Market Dynamics Q2 2026

• Net absorption reached -55,200 sq.m. year to date, driven by occupier consolidation, pushing the headline vacancy rate up to 10.5%.
• Year-to-date completions of 69,900 sq.m. have already surpassed the 35,200 sq.m. delivered across all of 2025, largely balancing out a significant volume of stock withdrawals over the period.
• Gross effective rents held at AUD 374 p.sq.m. p.a., representing 3.9% growth year-on-year.

Canberra's office market recorded negative net absorption of -55,200 sq.m. year to date in Q2 2026, exceeding the -25,200 sq.m. recorded across all of 2025 with half the year still remaining. Occupier consolidation, particularly among large tenants, has been the primary driver of this negative demand trend. The headline vacancy rate marginally increased to 10.5%, compared to 10.4% at end of 2025 and 8.0% at end of 2024, continuing a gradual upward trend over recent years.

Supply additions have also contributed to the rise in vacancy. Year-to-date completions reached 69,900 sq.m. in Q2 2026, already surpassing the 35,200 sq.m. delivered across the entirety of 2025. This acceleration in new stock, alongside contracting net absorption, has added to the upward pressure on vacancy. A further 226,800 sq.m. remains under construction across eight projects, indicating that supply will continue to be a feature of the market in the near term. Gross effective rents were recorded at AUD 374 p.sq.m. p.a., representing 3.9% growth year-on-year.

Vacancy is expected to remain elevated in the near-term, as ongoing public service consolidation continues to weigh on demand and further supply completions are absorbed into the market. Rental growth is expecte to stabilise. With a substantial volume of supply still to be delivered, vacancy is likely to face further upward pressure over the coming periods, particularly within the secondary market .