Market Briefing

South Melbourne
CRE Snapshot

Office & industrial demand, Q2 2026

Arealytics · Prepared for Acme Capital · June 2026
At a glance

The headline numbers

4.8%
Prime office vacancy
▼ 0.6pp QoQ
$685/m²
Net face rent (prime)
▲ 3.2% YoY
62k m²
Net absorption YTD
▲ Strong
Arealytics South Melbourne · Q2 2026
What's driving it

Demand is tightening

Flight-to-quality continues to concentrate tenant demand in premium-grade stock, pushing prime vacancy below the long-run average while secondary assets soften.

  • Three sub-5,000m² leases signed above asking in May
  • Incentives compressing on A-grade, steady on B-grade
  • Limited new supply until 2028 completions
Arealytics 03
Outlook

Three things to watch

Supply pipeline

No major completions until late 2028 keeps prime stock scarce.

Rate trajectory

Easing cycle supports cap-rate compression into H2.

Tenant mix

Professional services and gov-backed tenants underpin demand.

Arealytics 04

Let's talk strategy

josh.symons@arealytics.com.au · arealytics.com.au