Office market surges in Q2 as Brisbane outpaces the pack
National office rents rose in the June quarter, with Brisbane at the forefront, as occupiers increasingly compete for high-quality spaces in CBD locations.
Recent findings from Cushman & Wakefield have shown that office rents continued to grow during the second quarter of 2025, as more buyers vie for high-quality, well-located office spaces in capital cities across the nation.
Cushman & Wakefield associate director of national research, Jake McKinnon said the recent office market growth was widespread, with growth rates differing between each capital city market.
“Australia’s major CBD office markets continue to move at different speeds, with performance increasingly defined by asset quality and location,” McKinnon said.
Up north in Brisbane, data showed that tightening vacancy rates and limited supply additions placed upward pressure on rents in the River City during the second quarter of 2025.
McKinnon said the alignment in favourable conditions in Brisbane’s office market helped higher-quality ‘prime’ properties' effective rents increase by 6.8 per cent during the quarter.
Brisbane's prime properties now reach $448 per square metre per annum (sqm/an), achieving a 22.6 per cent year-on-year uplift.
While demand in Brisbane’s office market was primarily focused on higher-quality properties in the city’s centre, McKinnon said that secondary assets still recorded solid, albeit slower-paced growth over Q2 2025.
Net effective rents for secondary properties in Brisbane rose 15.3 per cent over Q2 to $289 sqm pa, notching up a 15.3 per cent year-on-year growth.
Over the second quarter of 2025, the Sydney CBD’s office market recorded the next highest growth.
Sydney’s prime net effective rents increased by 1.7 per cent to $795 sqm pa, up 5.9 per cent compared to last year.
Cushman & Wakefield said Sydney’s rental growth follows a recent spike in demand for prime office spaces, with the average occupier brief requirements increasing from 730 sqm to 1,200 sqm due to more organisations mandating a return to office.
The firm also said that demand for office spaces was most concentrated in the premium ‘core’ of Sydney’s market, where properties attracted a rental premium that was approximately 18 per cent higher than equivalent non-core counterparts.
Data showed that conditions in Sydney’s secondary market were “a little tougher”, with the slight quarterly uptick to gross incentives resulting in net effective rents averaging at $510 sqm pa, and marking a year-on-year decline of 5.4 per cent.
In Melbourne, the city’s CBD recorded steady growth, with quarterly prime net effective rents increasing 0.9 per cent to $399 per square metre per annum, 2.8 per cent higher than 12 months ago.
While incentives for Melbourne’s premium-grade stock remained steady at 46.8 per cent over Q2 2025, the city’s secondary sectors saw a record jump in incentives to 49 per cent, which is up 9 per cent year-on-year.
Although data showed that conditions were stable in Adelaide’s office market due to the new and refurbished stock that has driven up rent prices, the firm said that competition for tenants has pushed incentives up 4 per cent higher to the 41 per cent mark in Q2 2025.
Over to the nation’s west, improving business conditions and growing demand for high quality assets have driven rental growth for offices in Perth, where prime net effective rents went up 1.2 per cent during the quarter to an average of $380 sqm pa.
Even with the multi-speed performance of the various capital city markets, McKinnon said that office rental growth is expected to continue, driven by strong demand for high-quality and centrally located office spaces.
“Looking ahead, the national outlook remains positive, with continued rental growth expected as occupiers prioritise premium spaces that support employee experience, sustainability, and long-term value,” he concluded.