Canberra office market posts 19,700 sqm negative net absorption in Q4 2025, marking the second consecutive quarter of negative demand. Despite rising to 10.4%, vacancy remains the lowest among Australian CBDs tracked by JLL

• Over Q4 2025, negative net absorption of 19,700 sqm pushed Canberra’s office vacancy up 0.9 pps to 10.4%. This marked the second consecutive quarter of increased vacancy, demonstrating the impact significant public sector consolidations had on the market.
• Prime net absorption registered 4,500 sqm, bringing prime vacancy down by 0.3 pps to 8.3%, while significant negative net absorption of around -24,300 sqm lifted secondary vacancy by 3.3 pps to 14.8%, as government occupants consolidated into higher-quality stock.

Canberra leads Australia with 238,700 sqm under construction across nine projects, representing 29.6% of the national pipeline

• The Canberra office market showed robust development activity with 238,700 sqm under construction (10.6% of total stock) as at Q4 2025. Development spanned nine projects with 70.4% pre-commitment, reflecting strong demand for new stock.
• Canberra’s construction pipeline remained the largest across the 19 Australian office markets tracked by JLL, representing 29.6% of total office stock under construction, despite making up only 7.6% of office stock nationally.

Prime net effective rents rise 2.3% over Q4 2025 in Canberra, while incentives and yields remain unchanged across both grades

• Prime net effective rents increased by 2.3% over the quarter to AUD 273 per square metre p.a., an increase of 6.5% year-on-year, up from AUD 256 in Q4 2024. Prime incentives remained unchanged at 27.9%.
• Secondary net effective rents remained unchanged over the quarter at AUD 171 per square metre p.a.; however, they were down by 2.5% year-on-year, from AUD 175 in Q4 2024. Secondary incentives remained unchanged at 29.1%.

Outlook: Canberra vacancy to rise in 2026 as consolidations continue and 87,000 sqm of completions increase available stock

• Headline vacancy is expected to increase over the next 12 months, with continued consolidation activity, as the Australian public service pushes to improve occupational efficiency. Incentives are expected to increase as available stock rises.
• Office completions are forecast to increase over the coming 12 months, with an additional 86,700 sqm expected to be completed by the end of 2026.