Australia CBD Office Figures Q1 2026

Key Points:

• The labour market remains robust with an unemployment rate of 4.3%.
•  Australian CBD prime effective rents climbed 1.8% q-o-q and 6.6% y-o-y in Q1 2026, the highest annual growth since early 2019.
• Sentiment in the leasing market in early 2026 appeared to be better than the same time last year, with more tenant actively engaging with the market across Australia.  
• Supply outlook remains largely unchanged with the lowest supply over the next 5 years since the early 1990s.
• Transaction activity in Q1 2026 was solid across the Australian office market, reaching $3.5 billion.
• Prime yields were stable in Q1 2026, averaging 6.67% for Australian CBDs. However, recent developments in the Middle East have changed the outlook on interest rates given the resultant inflationary pressure.