Asia Pacific Office Outlook 2024

MELBOURNE

DEMAND & VACANCY

N E T A B S O R P T I O N ( S QM ) A N D VAC A N C Y R AT E ( % )

FORECAST

-60,000 -40,000 -20,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000

16.0%

14.0%

 A surprisingly resilient labour market has seen several upward revisions to Melbourne CBD office employment forecasts since the COVID-19 pandemic.  Against this backdrop, prime net absorption is expected to hit between 80,000 sqm and 100,000 sqm in each of 2024 and 2025.  Although new supply scheduled to complete from 2026 will likely put a floor under vacancy, robust demand is expected to put downward pressure on vacancy rates in the near term.

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

2021

2022

2023F 2024F 2025F 2026F 2027F Net Absorption Vacancy Rate

Source: Cushman & Wakefield