Australian prime office rents up 4.3% in Q2

Brisbane saw the fastest rental growth during the quarter.

Office rental growth picked up steam, with broad based rises across the Eastern Seaboard markets. According to data from Knight Frank, prime net effective rents across Australia’s prime office markets rose 4.3% year-on-year, lifted by the 14.1% increase in Brisbane.

Here’s more from Knight Frank:

Average incentives, estimated at 38.5% in 2025, are down from an average of 40% in the last two years, while new supply in 2025 is coming online with almost full pre-commitments. Rents in Melbourne also reversed the preceding quarter’s decline to rise 1.8%.

Growth was observed to be largely concentrated in the prime Eastern Core submarket, driven by legal and professional services firms. The area is rich in amenities and well-connected, which is what tenants are gravitating to and prepared to pay for.

While face rent in Perth continued to rise, higher incentives to get deals over the line, which rose to about 47%, led to a marginal dip in effective rents. Auckland’s office leasing market has remained in a holding pattern due to softer business confidence.