Cushman & Wakefield sees tightening prime office supply in Australia as occupier confidence improves
CWK•Australia office market sees tighter prime supply
- Cushman & Wakefield flagged a structural shift in Australia’s office market, with a shrinking development pipeline tightening prime supply through the decade.
- Leasing activity rose in H1 2026 across most capitals, though major occupiers are taking longer to commit amid economic uncertainty.
- Headline CBD vacancy rates overstate effective choice, with availability concentrated in older stock while prime space becomes scarce.
- Rents are rising in several markets; expansion rights and renewal options are gaining value as tenants face fewer viable alternatives.
- High construction costs are curbing new builds, lifting focus on repositioning existing assets; demand remains strong for fitted, move-in-ready space.
