Quarterly Report · Q2 2026
Q2 2026 analysis of leasing activity, sales transactions and investment performance across the Greater Melbourne office & industrial markets, with sales covering the first half of 2026.
Greater Melbourne Settled Transactions & Lease Report · Q2 2026
Office Market — Sales Activity & Investment Performance
State Comparison
H1 2026 Office Sales Activity — State Comparison
| State / Region | Deal Count | Total Sales Volume | Median Price /m² | YoY Price /m² Change | Avg Yield |
|---|---|---|---|---|---|
| Greater Melbourne | 422 | $1,236,969,529 | $5,249 | -12.2% | 6.7% |
| Greater Adelaide | 162 | $345,829,396 | $5,839 | 5.9% | 5.6% |
| Greater Sydney | 393 | $1,463,067,227 | $8,998 | 0.4% | 5.6% |
| Greater Perth | 242 | $350,328,974 | $4,848 | 3.7% | 5.7% |
| Greater SEQ | 324 | $1,910,278,901 | $6,349 | 15.8% | 6.2% |
Greater Melbourne recorded the highest office transaction count across the five markets, with 422 sales totalling $1.24 billion in H1 2026. Despite strong transaction activity, the median sale rate declined 12.2% year on year to $5,249/m², while the average sale yield of 6.7% was the highest among the markets tracked by Arealytics.
Sales by Structure Type
H1 2026 Office Sales Activity by Structure Type
Freehold office assets accounted for 71.3% of Greater Melbourne’s total sales value, generating $881.1 million across 135 transactions at a median sale rate of $6,600/m². Strata offices dominated transaction activity with 287 sales totalling $355.9 million, although median sale rates declined 8.9% year on year to $5,102/m², compared with a more moderate 3.6% decline for freehold assets.
Economic Performance
Victorian Economic Backdrop, Q2 2026
Victoria added 109,500 residents (+1.6%) in the year to March 2026, ahead of NSW’s 1.2% growth, supporting consumer demand, housing and investment in essential services.
Around 81,700 net overseas migrants arrived in the year to March 2026, nearly 75% of the state’s population growth, adding to workforce availability and consumer spending.
Government infrastructure investment is projected to reach $21.4 billion in the 12 months to Q2 2026, supporting construction and major transport projects across Melbourne.
Victoria’s economy is forecast to grow 1.5% in the 12 months to Q2 2027, with household consumption and private investment expected to remain key drivers.
* Source: Australian Bureau of Statistics (ABS)
Arealytics · Q2 2026 Greater Melbourne Office Settled Transactions & Lease Report
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Greater Melbourne Settled Transactions & Lease Report · Q2 2026
Office Market — Lease Activity & Rate Trends
Lease Rate Trends
Greater Melbourne Office Lease Rate Per Square Metre Trends
The median commencing rent reached $326 per m² in Q2 2026, up 5.2% year on year despite fluctuations over the past three years.
The 75th percentile rose 39.3% to $500/m², suggesting higher-priced leases are achieving stronger rental growth than the broader market and widening the gap between premium and lower-priced accommodation.
Lease Structure
Most Common Lease Rate Types and Escalation in Q2 2026 Office Leases
Most Common Lease Rate Types
Percentage of Total
Fixed escalations account for 49.5% of leases and CPI-linked reviews a further 32.8%. Annual increases of 4.0% (27.1%) and 3.0% (26.1%) dominate, while two- and three-year lease terms remain the most common, suggesting a preference for shorter commitments and flexibility in managing future rental adjustments.
Top Escalation Rates
Percent of Total
Top Lease Terms
Percent of Total
Arealytics · Q2 2026 Greater Melbourne Office Settled Transactions & Lease Report
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Greater Melbourne Settled Transactions & Lease Report · Q2 2026
Office Market — Suburb Pricing Summary
Suburb Pricing
Pricing Summary for Top Greater Melbourne Office Suburbs by Transaction Count · Q2 2026
Greater Melbourne’s office market recorded its highest transaction activity in the suburb of Melbourne during Q2 2026, with 32 strata sales, four freehold sales and seven leases. Median commencing rents reached $527/m², while freehold sales achieved $7,691/m², notably higher than the strata median of $5,102/m². Docklands and Williams Landing also recorded solid activity, with strata transactions accounting for all reported sales in both locations, and Mickleham stood out with eight strata sales at a median $7,623/m² despite no leasing activity.
Arealytics · Q2 2026 Greater Melbourne Office Settled Transactions & Lease Report
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Greater Melbourne Settled Transactions & Lease Report · Q2 2026
Industrial Market — Sales Activity & Investment Performance
State Comparison
H1 2026 Industrial Sales Activity — State Comparison
| State | Deal Count | Total Sales Volume | Median Price /m² | YoY Price /m² Change | Avg Yield |
|---|---|---|---|---|---|
| Greater Melbourne | 1,109 | $2,549,756,593 | $3,344 | 1.4% | 4.5% |
| Greater Perth | 348 | $881,260,040 | $3,430 | 13.2% | 4.5% |
| Greater Sydney | 631 | $2,296,122,797 | $6,022 | 2.8% | 4.1% |
| Greater SEQ | 939 | $2,247,608,290 | $4,338 | 3.3% | 4.8% |
| Greater Adelaide | 270 | $750,057,672 | $3,049 | -2.5% | 4.8% |
Greater Melbourne led industrial sales activity across the five markets tracked by Arealytics in H1 2026, recording 1,109 transactions and $2.55 billion in sales value. Despite this strong transaction volume, annual price growth of just 1.4% suggests a more measured pricing environment, with comparatively affordable industrial assets continuing to attract buyers.
Sales by Structure Type
H1 2026 Industrial Sales Activity by Structure Type
Strata industrial properties accounted for 66.7% of Greater Melbourne’s sales transactions, while freehold assets generated around 71.3% of total sales value. Strata assets achieved a median of $3,571/m², a 20.2% premium over freehold at $2,971/m², and their median rose 20.2% year on year while freehold pricing was largely unchanged. Average yields were close, at 4.4% for strata and 4.7% for freehold.
Historical Activity
Greater Melbourne Industrial Sales Activity by Quarter
Arealytics · Q2 2026 Greater Melbourne Industrial Settled Transactions & Lease Report
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Greater Melbourne Settled Transactions & Lease Report · Q2 2026
Industrial Market — Lease Activity & Rate Trends
Lease Rate Trends
Greater Melbourne Industrial Lease Rate Per Square Metre Trends
Median commencing rents have held within a narrow $128–$137/m² range since Q1 2024. By Q2 2026 the median eased 1.9% year on year to $132/m². The 75th percentile fell 5.3% to $155/m² while the 25th percentile held near $115/m², suggesting higher-priced accommodation is under the most pressure and tenants may be gaining negotiating leverage.
Lease Structure
Most Common Lease Rate Types and Escalation in Q2 2026 Industrial Leases
Fixed annual escalations account for 54.8% of industrial leases, with a further 20.0% combining fixed and market reviews. Annual increases of 4.0% (31.8%) and 3.0% (30.5%) are almost equally common. Three-year terms lead at 36.3%, followed by two-year agreements at 23.2%.
Most Common Lease Rate Types
Percentage of Total
Top Escalation Rates
Percent of Total
Top Lease Terms
Percent of Total
Arealytics · Q2 2026 Greater Melbourne Industrial Settled Transactions & Lease Report
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Greater Melbourne Settled Transactions & Lease Report · Q2 2026
Industrial Market — Suburb Pricing Summary
Suburb Pricing
Pricing Summary for Top Greater Melbourne Industrial Suburbs by Transaction Count · Q2 2026
Dandenong South led industrial activity across Greater Melbourne in Q2 2026 with 37 combined sales and leasing transactions, followed by Carrum Downs and Pakenham with 29 each. Leasing was strongest in Dandenong South and Truganina (25 and 21 leases), although median commencing rents differed considerably at $125/m² and $213/m². Strata sales drove activity in Pakenham and Keysborough, with 17 and 18 transactions.
Arealytics · Q2 2026 Greater Melbourne Industrial Settled Transactions & Lease Report
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Methodology
To ensure maximum accuracy and coverage, sale and lease transaction data in this Settled Transactions Report incorporates official public and statutory records across Australian jurisdictions as well as other data sources from other direct market participants and data partnerships. Due to standard settlement periods and reporting processing windows, official transactional data is subject to a minimum one-quarter lag. Consequently, Second Quarter (Q2 ending 30 June) figures reflect verified, reconciled data available for publication in October. This structured timeline ensures preliminary or unverified transactions do not distort market trends, providing stakeholders with a complete and reliable analysis.
Important Notice
This report has been prepared by Empirical CRE Pty Ltd ("Arealytics") in partnership with Real Estate Institute of Victoria ("REIV") for general information purposes only. It presents a snapshot of Greater Melbourne office and industrial market activity for the second quarter of 2026, with sales activity covering the first half of 2026.
The information contained in this report is derived from a range of sources, including publicly available records, third-party data providers and Arealytics' own research. While all reasonable care has been taken in its preparation, Arealytics makes no representation or warranty, express or implied, as to the accuracy, completeness or currency of the information, and accepts no liability for any loss or damage arising from reliance upon it.
The figures presented reflect market conditions as at the date of publication and are subject to revision as further data becomes available. Past performance is not a reliable indicator of future performance.
Nothing in this report constitutes financial, investment, taxation or legal advice, and it should not be relied upon as such. Recipients should obtain independent professional advice before making any decision based on its contents.
The contents of this report remain the intellectual property of Arealytics and intended solely for the named recipient which has requested a copy. It may not be reproduced, distributed or referenced, in whole or in part, without reference to Arealytics.
REIV
Prepared By
Misty Belsha
Market Insights & Research Lead misty.belsha@arealytics.com.au
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