Australian Office Sublease Barometer March 2026

Key Points: 

• National sublease volumes declined for the ninth consecutive quarter in Q1 2026. Combined CBD sublease availability ended the period at 125,699 sqm. Sublease volumes continue sit at their lowest levels in five years.
• Encouragingly for the market there has not been an uptick in sublease activity due AI adoption by occupiers.
• Melbourne recorded the largest decrease in sublease volumes in Q1 2026. Volumes in Melbourne declined by over c.17,000 sqm (or -21.0%) over the first three months of the year, ending the period at 64,048 sqm. Sublease volumes in Sydney, Brisbane, and Perth also declined over the first quarter. The sublease vacancy rate in each of these markets sits below 1.0% as of Q1 2026.
• The Professional Services, Finance & Insurance, and Tech, Media, & Telecommunications sectors remained the largest contributors to sublease availabilities as of year-end. These sectors account for c.65.0% of the national total.
• The average size of sublease listings continues to decline, ending the period at 1,166 sqm.