Greater SEQ office occupiers are taking less space per lease, and paying more for it. That is not the signature of a market in retreat.
Since 2022, the average size of a new office lease in Greater SEQ has fallen from 260 m² to 150 m², down 42.3%. Over the same period the average commencing rate has increased from $579/m² to $650/m², up 12.3%.
Smaller every year
The average lease got smaller in every year of the series: 260 m² in 2022, 258 m² in 2023, 220 m² in 2024, 192 m² in 2025 and 150 m² in 2026. The largest single-year fall came most recently, a drop of almost 22% between 2025 and 2026.
Rates did not follow a straight line
The average commencing rate rose to $625/m² in 2023, eased to $550/m² in 2024 and $536/m² in 2025, then lifted to $650/m² in 2026 — the highest of the five years and around 21% above 2025.
Right-sized, and more selective
The market is seeing more right-sized requirements, with occupiers taking less space per transaction as hybrid work changes workplace planning and smaller tenancy requirements make up a larger share of leasing activity.
At the same time, demand is concentrating in buildings that can offer the quality, amenity and location businesses now expect from the office. That is allowing better space to command higher rates even as the typical lease gets smaller.
Greater SEQ is not simply becoming a smaller office market. It is becoming a more selective one.
| Year | Average leased size | Average commencing rate |
|---|---|---|
| 2022 | 260 m² | $579/m² |
| 2023 | 258 m² | $625/m² |
| 2024 | 220 m² | $550/m² |
| 2025 | 192 m² | $536/m² |
| 2026 | 150 m² | $650/m² |
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