Canberra to see 72,000sqm of new office space by Q3 2026

Office completions are expected to increase.

According to a JLL report, headline office 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,” the report said.

Here’s more from JLL:

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%.