Flexible Office Space Report - Q4 2025

Sydney Holds $1,000 Benchmark as Market Absorbs Record Annual Supply Expansion

Sydney maintained its $1,000 premium benchmark while absorbing significant new supply throughout the year, a testament to the market's unmatched depth. Parramatta emerged as the quarter's standout performer with rates surging 12% as western Sydney demand intensified. North Sydney's repositioning following older stock removal has created a tighter, higher-quality market, driving annual desk rates up 10%.

Key Sydney Takeaways

• Clear pricing tiers established: CBD at $1,000, inner-city boutique markets (Darlinghurst, Surry Hills) at $750–861, and suburban alternatives (North Sydney, Parramatta, Manly) at $600–709

• North Sydney repositioned: Removal of older stock has created a tighter, higher-quality market with 10% annual rate growth

• Western Sydney demand intensifies: Parramatta's quarterly rate surge (+12%) signals strengthening demand in Sydney's secondary CBD as businesses seek value without sacrificing connectivity

• Unmatched market depth: The CBD's ability to absorb 28% more space annually without rate erosion is unique nationally

Sydney Suburban Markets Deliver Value Beyond the CBD

• Sydney CBD held rates steady at $1,000 with space contracting 3.9%, demonstrating stability at the premium price point
• North Sydney saw rates decline 2.4% to $600 alongside modest space reduction (-4%), positioning it as a compelling value alternative to the CBD
• Parramatta posted the strongest suburban rate growth, up 12% to $709, driven by substantial takeup (-28%)
• Surry Hills continued its boutique positioning with rates up 4.2% to $750 and space down 10%
• Darlinghurst held rates at $861 while space expanded 18%, indicating new supply entering this inner-city precinct
• Manly maintained rates at $600 with significant space contraction (-46%), reflecting strong northern beaches demand

What stands out in Sydney is the market's depth across price points. You can pay $1,000 in the CBD, $750 in Surry Hills, or $600 in North Sydney—each offering distinct value propositions. Businesses are becoming more sophisticated in matching location to their actual requirements.

Tom Petryshen, VP Growth & Analytics

Office Segments Contract Quarterly Despite Strong Annual Supply Growth

Despite significant annual supply expansion across most segments—5-10 staff (+40.9%), 11-15 staff (+35.2%), 16-25 staff (+16.8%), and notably 26-50 staff (+97.7%)—Q4 demand outpaced new inventory, contracting available space 8%.

• Micro suites (1-4 staff) saw rates decline 3.7% to $900 with significant space contraction (-28%), suggesting strong takeup at adjusted pricing
• Small team offices (5-10 staff) maintained stability with rates up 1.4% to $1,055 and space essentially flat (+1%)
• Mid-market offices (11-15 staff) posted 4.1% rate growth to $1,039 alongside 19% space reduction, indicating robust demand for this configuration
• Larger teams (16-25 staff) experienced rate pressure (-8.5% to $1,006) despite space contracting 10%
• The 26-50 staff segment saw modest rate growth (+1.1% to $1,000) while space expanded 13%, indicating new supply entering this configuration
• Enterprise suites (50+ staff) remain limited for businesses seeking flexible options

Start your search for office space in Sydney today.

Source: Rubberdesk Q4, 2025

Melbourne CBD Rates Jump 10% as Premium Supply Reshapes the Market

Melbourne's CBD recorded a notable 11% quarterly rate jump to $799, signalling premium supply entry despite the city's broader office market challenges. Inner-city precincts tightened sharply, with Collingwood and South Melbourne space contracting over 40%. The market remains split, with small team segments performing strongly while larger configurations face sustained price sensitivity.

Key Melbourne Takeaways

• CBD rate surge signals premium repositioning: Melbourne CBD posted 11% quarterly rate growth to $799 with space stable, suggesting premium supply entry is elevating the market's quality profile

• Clear market division: Small team segments (under 15 staff) are performing strongly with rate growth of 2–18%, while larger configurations (26+ staff) face sustained rate pressure (-19% annually)

• Inner-city precincts tightening sharply: Collingwood and South Melbourne experienced space contractions exceeding 40%, indicating exceptional takeup at value and mid-tier price points

• Geographic diversity provides tenant choice: Melbourne's pricing spans from $539 (Docklands) to $800 (Southbank/CBD), offering genuine options across quality tiers and price points

Melbourne's story this quarter is one of two markets operating simultaneously. The CBD's 10% rate jump reflects premium operators elevating the quality bar, while inner-city precincts like Collingwood are seeing exceptional takeup at value price points.

Suzana De Abreu, Account Manager

Inner-City and Fringe Markets Tell Varied Stories

• Melbourne CBD rose 11% to $799 with space essentially flat, suggesting premium supply entering the market
• Southbank saw rates rise 6.7% to $800 alongside significant space contraction (-23%), indicating strong demand in this CBD-adjacent precinct
• Cremorne experienced notable rate correction (-20% to $773) despite modest space expansion (+3.3%), suggesting price adjustment in this premium creative hub
• South Melbourne saw rates decline 4.5% to $607 with dramatic space contraction (-44%)
• Richmond posted strong rate growth (+9.7% to $729) with space down 40%, indicating robust inner-east demand
• Collingwood held rates steady at $542 while space contracted 53%, demonstrating strong takeup at this value-positioned creative precinct
• Docklands saw rates edge down 2% to $539 alongside 21% space reduction

Office Segments Show Divergent Performance

• Micro suites (1-4 staff) saw modest rate growth (+2% to $809) with space expanding 5.6%
• Small team offices (5-10 staff) rose 3.7% to $798 with space essentially unchanged
• Mid-market offices (11-15 staff) recorded the largest desk rate increase (+18% to $916) alongside space expansion (+5.6%), suggesting premium supply entering this segment
• Larger teams (16-25 staff) achieved 7.3% rate growth to $775 despite space contracting 15%
• The 26-50 staff segment dropped 19% to $580 with space down 27%, indicating sustained softness at this configuration

Search for office space in Melbourne.

Source: Rubberdesk Q4, 2025

Brisbane CBD Space Contracts 27% Annually as Supply Squeeze Intensifies

Brisbane's CBD reinforced its position as Australia's tightest central market, with available space down 27% annually while rates grew 6%. The market remains heavily CBD-concentrated, though Milton's supply surge signals emerging suburban alternatives. Strong Queensland economic conditions continue underpinning demand, with operators cautiously expanding fringe inventory.

Key Brisbane Takeaways

• CBD remains Australia's tightest central market: 27% annual space contraction alongside 6% rate growth confirms sustained supply-demand imbalance in Brisbane's core

• Market heavily CBD-concentrated: With 74% of listed offices in the CBD, businesses seeking suburban alternatives face limited options

- Small teams driving takeup: Micro suites (1-4 staff) saw 13% annual space contraction while small team offices (5-10 staff) experienced similar tightening. Both segments show sustained demand.

CBD Dominates While Fringe Markets Emerge

• Brisbane CBD saw rates edge up 1.1% to $657 with space expanding 7.1% quarterly; annual space contraction of 27% confirms underlying market tightness
• Fortitude Valley saw rates decline 3.5% to $500 alongside 18% space reduction, suggesting market repricing despite healthy occupancy
• Bowen Hills posted modest rate growth (+2.9% to $685) with space unchanged, maintaining premium positioning above CBD rates
• Milton saw rates edge down 2.6% to $455 while space more than doubled (+114%), signalling significant new supply entry at this emerging suburban hub
• South Brisbane offers limited options for businesses exploring fringe alternatives

Small Team Segments Drive Market Activity

• Micro suites (1-4 staff) saw rates edge up 1.2% to $657 with space down 2.1%; annual space contraction of 13% confirms sustained demand for compact configurations
• Small team offices (5-10 staff) held rates steady at $608 while space contracted 8.8%
• Mid-market offices (11-15 staff) saw rates decline 6% to $639 alongside significant space reduction (-17%); annual rates remain flat, suggesting quarterly volatility rather than structural weakness.
• Larger teams (16-25 staff) experienced rate adjustment (-7.3% to $600) as space expanded 22%
• The 26-50 staff segment held steady with rates essentially flat (+0.5% to $575) and space expanding 27% annually

Find the perfect office for your team in Brisbane.

Source: Rubberdesk Q4, 2025

Perth's Supply Crunch Deepens with Available Space Down 34% Year-on-Year

Perth's acute supply constraints intensified further, with available space down 34% annually—the most severe contraction nationally. West Perth's transformation continued with 56% annual rate growth, evolving from budget alternative to established demand hub. The CBD held its $749 desk rate ceiling despite significant space reduction, suggesting businesses are resisting further increases.

Key Perth Takeaways

• Australia's most supply-constrained market: CBD space contracted 26% quarterly while rates held at $749, confirming acute and sustained supply-demand imbalance

• Market severely CBD-concentrated: With 79% of listings in the CBD, businesses seeking suburban alternatives face extremely limited options

• Small team takeup driving contraction: Micro suites (1-4 staff) saw 26% quarterly space contraction, demonstrating sustained demand for compact configurations

CBD Dominates as Suburban Options Remain Scarce

• Perth CBD held rates at $749 with significant space contraction (-26%), confirming acute supply constraints in the core market
• West Perth maintained rates at $599 with modest space reduction (-6%); annual space contraction of 49% reflects its evolution from budget alternative to established demand hub
• Osborne Park held rates at $436 while space contracted 23%, offering the most affordable option at 43% below CBD rates
• Subiaco offers limited options for businesses exploring alternatives

Small Team Segments Dominate Limited Inventory

• Micro suites (1-4 staff) saw rates rise 7% to $749 with significant space contraction (-26%)
• Small team offices (5-10 staff) held rates steady at $749 while space edged down 2.3%
• Mid-market offices (11-15 staff) saw rates rise 6.4% to $850 alongside space contraction (-14%); annual space down 56% indicates severe tightening in this segment
• Larger configurations (16+ staff) remain severely constrained with limited options across all segments above 15 staff

Start your search for office space in Perth today.

Source: Rubberdesk Q4, 2025

Adelaide Market Stabilises After Absorbing 165% Annual Supply Expansion at Premium Rates

Adelaide's flexible office market showed signs of stabilisation in Q4 2025, with CBD rates edging down 2% to $645 while space contracted 4%. Following a transformative year that saw available space more than double, the market appears to be finding its equilibrium. Suburban precincts at Mawson Lakes and Wayville maintained steady pricing at $398, providing reliable value alternatives.

Key Adelaide Takeaways

• Market stabilising after transformation year: CBD rates edged down 2.1% with space contracting 4.1% quarterly, suggesting equilibrium following 165% annual supply expansion

• New supply successfully absorbed: Premium inventory from operators including Tank Stream Labs and Creative Cubes has been well received across the market

• Small team segments driving takeup: Micro suites (1-4 staff) saw 15% quarterly space contraction, demonstrating healthy demand for compact configurations

• Suburban value remains consistent: Mawson Lakes and Wayville maintained steady rates at $398, offering reliable alternatives at 38% below CBD pricing

CBD Matures While Suburban Markets Hold Firm

• Adelaide CBD saw rates edge down 2.1% to $645 with space contracting 4.1%; annual space expansion of 165% has been successfully absorbed
• North Adelaide held rates steady at $605 with space unchanged, providing consistent near-CBD positioning at a modest discount
• Mawson Lakes maintained rates at $398 with stable space, confirming reliable suburban value positioning
• Wayville held rates at $398 with minimal space change, offering consistent budget alternative

Small Team Configurations Dominate Market Activity

• Micro suites (1-4 staff) held rates steady at $589 while space contracted 15%; annual space expansion of 63% has been absorbed with healthy quarterly takeup
• Small team offices (5-10 staff) saw rates edge up 0.8% to $605 with space down 2.5%; annual space growth of 104% confirms substantial new inventory absorption
• Mid-market offices (11-15 staff) held rates at $715 with space unchanged, suggesting this segment has reached equilibrium
• Larger teams (16-25 staff) maintained rates at $715 while space expanded 12%; annual growth of 747% signals operators have addressed previous supply gaps
• Enterprise suites (26+ staff) remain limited for businesses seeking larger flexible spaces

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Source: Rubberdesk Q3, 2025

Suburban Stability Anchors Canberra as CBD Experiences Strong Takeup

Canberra's CBD experienced the quarter's most dramatic contraction at 36%, suggesting strong government and contractor takeup despite broader public sector uncertainty. The city's polycentric structure provides genuine geographic flexibility, with suburban markets maintaining remarkable pricing stability. Pialligo emerged as a new premium precinct near the airport with significant rate growth.

Key Canberra Takeaways

• CBD posts sharpest national quarterly contraction: 36% space reduction alongside 6.3% rate growth signals robust takeup despite broader public sector uncertainty

• Polycentric structure provides genuine flexibility: Unlike Perth (79% CBD) and Brisbane (74% CBD), Canberra's inventory spans seven distinct precincts with meaningful suburban options

• Suburban stability anchors the market: Dickson, Phillip, Symonston, and Belconnen all maintained steady rates, providing predictable alternatives to CBD volatility

• Small teams driving CBD takeup: Micro suites (1-4 staff) saw 26% quarterly space contraction, demonstrating sustained demand for compact configurations

Suburban Stability Contrasts with CBD Volatility

• Canberra CBD posted rate growth (+6.3% to $638) with dramatic space contraction (-36%), suggesting strong government and contractor takeup
• Pialligo held rates at $563 with space unchanged quarterly; annual space expansion of 267% alongside 27% rate growth establishes this airport-adjacent location as an emerging premium precinct
• Dickson maintained rates at $500 with space unchanged, providing reliable inner-north positioning
• Kingston held rates at $540 with space down 17%, indicating healthy takeup in this inner-south precinct
• Belconnen maintained rates at $567 with modest space reduction (-4.3%), confirming steady demand in Canberra's northern town centre
• Phillip held rates at $500 with space unchanged, offering consistent Woden district positioning
• Symonston maintained rates at $450 with stable space, providing Canberra's most affordable option

Small Offices Experience Strong Quarterly Takeup

• Micro suites (1-4 staff) held rates steady at $540 while space contracted significantly (-26%); annual space down 19% confirms sustained demand for compact spaces
• Small team offices (5-10 staff) saw rates edge up 2.5% to $531 with space down 13%; annual space expansion of 23% has been absorbed with healthy quarterly takeup
• Nid-market offices (11-15 staff) held rates at $630 while space contracted 23%; limited inventory constrains options for growing teams
• Larger configurations (16+ staff) remain constrained with limited options across all locations

Search for the perfect office in Canberra.

Source: Rubberdesk Q4, 2025