Australia prime office rents up 5.5% in Q3

Brisbane led with the greatest rate of rental growth.

In a recent report, Knight Frank said prime net effective rents across Australia’s prime office markets rose 5.5% year-on-year, with broad based increases across all markets tracked. Incentives remained stable for a third consecutive quarter at an average of 42%.

‘Across the Australian CBDs, much of the rental increase has been fueled by strong demand at the top end of the market, reflecting the flight-to-quality trend that has defined tenant preferences in recent years,” the report added.

Here’s more from Knight Frank:

Brisbane continued to lead with a 14.9% rise while incentives fell to its lowest levels since late 2020. Rent growth in Melbourne also accelerated, rising 5.3% year-on-year during the quarter, up from 2.4% in Q2 2025. Much of this growth remains concentrated in the Eastern Core, with prime rents in the precinct growing 11.1% from the same period last year as availability tightens among premium spaces.

Following the supply peak in 2025, the pipeline will thin in Brisbane, Sydney and Perth, as developers face high construction and funding cost. This will likely drive tighter leasing markets and consequently faster rental growth.