Market statistics
Insight
02 February 2026
Melbourne Office Market Dynamics Q4 2025
Categories:
- Headline vacancy in the CBD stabilised over the quarter, with centralisation by large tenants offsetting weak demand amongst the small tenant cohort (<1,000 sqm). The Fringe market recorded a decrease in vacancy owing to strong small tenant uptake and new market entrants in recently completed stock, whilst headline vacancy rose in the S.E.S market.
- The Melbourne CBD recorded one project reaching completion over Q4 2025. In the Fringe market, an additional four projects completed; the S.E.S continues to record no supply. The CBD development pipeline is easing after recent completions, with steady additions continuing to be projected in the Metropolitan market.
- Prime yields narrowed in the CBD over Q4 2025, with the upper end compressing as transaction evidence indicated yields towards the lower end of the range. The Fringe and S.E.S market prime yield ranges remained unchanged.