Canberra office market posts 12,900 sqm negative net absorption in Q3 2025, ending streak of positive quarterly demand

• Over Q3 2025, Canberra recorded 12,900 sqm of negative net absorption, despite strong positive demand from smaller occupants (1,000sqm) take up.
• However, 20,000 sqm of consolidations outstripped positive demand.

Canberra’s vacancy rate rises to 9.6%, remains lowest among major Australian CBDs tracked by JLL

• As a result, Canberra’s headline vacancy rate increased 0.4 pps over the quarter to 9.6%. Prime vacancy increased 0.8 pps to 8.6%.
• Conversely secondary vacancy fell by 0.3 pps, to 11.5%. Canberra vacancy remains the lowest headline vacancy rate among the six CBD markets tracked by JLL.

Prime office rents rise 1.8% in Q3 2025 in Canberra; incentives and yields remain steady across both grades

• Prime net effective rents increased by 1.8% over the quarter to AUD 267 per square meter p.a., an increase of 2.5% year-on-year, up from AUD 260 in Q3 2024.
• Prime incentives have increased 0.4 pps to 27.9%. Secondary net effective rents increased by 0.1% over the quarter to AUD 171 per square meter p.a., however they remain down by 4.2% year-on-year, from AUD 178 in Q3 2024. Secondary incentives have increased 1.0 pps to 29.1%.

Outlook: Canberra office vacancy and incentives to rise as consolidations and new supply expected

• Headline vacancy rate is expected to increase over the next 12-months, as consolidation activity picks up in Canberra, as the Australian public service push to improve occupational efficiency. Incentives are expected to increase as available stock increases.
• Office completions are expected to increase over the coming 12-months, with an additional 72,000sqm expected to complete by the end of Q3 2026.