The January 2025 edition of the bi-annual Office Market Report shows Melbourne's CBD office vacancy was stable at 18 per cent but is 4.3 per cent above the national average of 13.7 per cent.
In the six months to January 2025, the state's capital recorded its highest period of negative demand since 2022, the highest of any CBD across the country.
This reduction in demand was matched by a one per cent decrease in office supply, which may result from office space being removed from the market for refurbishments or conversions to other asset classes.
The new data also reveals Melbourne's sublease vacancy rates remain above the historical average, currently sitting at 1.6 per cent, a level that surpasses every Australian city.
Property Council of Australia Victorian Executive Director Cath Evans said Melbourne's consistent reduction in office demand highlights the need for government action on encouraging return to office policies.
"The Victorian Government has a responsibility to show more active leadership, ensuring Victorian public servants work in the office more often and support a vibrant CBD," Ms Evans said.
"If we want to remain one of the best cities to visit in the world, we must champion a thriving CBD that supports the businesses that help make our city great.
"While flexible working is a feature of many top organisations, nothing beats regular in-office contact for team building, mentoring, skills growth and productivity.
"The thousands of small businesses that call our CBD home are struggling without the regular foot traffic of office workers to support them.
"The government must deliver on its 'Open Doors' policy as part of last year's economic growth statement to ensure that business activity within the CBD is incentivised.
"Smaller CBD businesses deserve to be provided a conducive environment to revitalise economic activity in Melbourne.
"We are seeing a global trend among governments to support working in the office, and we encourage the Victorian Government to adopt a similar push.
"There remains a significant body of work to be done by the government in collaboration with the industry to address some of the strategic structural challenges facing our CBD.
"We look forward to working with the government to solve these problems."
For the full details of the Office Market Report and January 2025 results, click here.
CBD Vacancy Change
| City | July 2024 vacancy | January 2025 vacancy |
| Hobart | 2.8% | 3.6% |
| Canberra | 9.5% | 9.2% |
| Brisbane | 9.5% | 10.2% |
| Sydney | 11.6% | 12.8% |
| Darwin | 14.4% | 11.9% |
| Perth | 15.5% | 15.1% |
| Melbourne | 18.0% | 18.0% |
| Adelaide | 17.5% | 16.4% |
Melbourne vacancy rate by office grade
| Grade | July 2024 Vacancy | January 2025 vacancy |
| Premium | 16.1% | 16.8% |
| A | 18.0% | 18.5% |
| B | 22.9% | 20.3% |
| C | 11.8% | 11.8% |
| D | 7.2% | 10.3% |
