--- title: "Melbourne Class A Office Market" description: "Australia's second financial capital with deep professional services tenancy." canonical: https://classa.info/cities/melbourne pageType: city lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > Melbourne Class A office rents around A$720/sqm/yr · ≈ $43.5 PSF/yr USD, with 18.4% vacancy and 14 months of typical rent-free on a 7-year term. ## TL;DR - Trophy product on Collins Street trades at AUD 850-1,050/sqm/year. - Headline vacancy elevated post-2022 driven by hybrid work and supply. - Concessions are among the richest in APAC — 30%+ effective discounts common. - Significant 2024-2026 trophy delivery (Wesley Place 130 Lonsdale, Five Melbourne Quarter). # Melbourne Class A Office Market *Australia's second financial capital with deep professional services tenancy.* ## TL;DR - Trophy product on Collins Street trades at AUD 850-1,050/sqm/year. - Headline vacancy elevated post-2022 driven by [hybrid work](/topics/hybrid-workplace-strategy) and supply. - Concessions are among the richest in APAC — 30%+ effective discounts common. - Significant 2024-2026 trophy delivery (Wesley Place 130 Lonsdale, Five Melbourne Quarter). ## Overview Melbourne is Australia's second financial and professional services capital — anchored by deep banking (NAB, ANZ), professional services, and a structurally diverse cultural and education base. CBD trophy stock (Collins Street, Bourke Street) leads the rent stack; Docklands and Southbank provide trophy [expansion](/topics/cross-border-expansion). ## Market snapshot | Class A rent | 720 AUD/sqft/yr (43.47866479621699 USD)| | Vacancy | 18.4%| | Typical lease length | 7 years| | Typical rent-free | 14 months| Composite of Q1 2026 broker market reports for Melbourne. ## Lease norms Net leases. 7-10 year terms standard. Incentives of 30-45% (combination of free rent, fitout, and [rent abatement](/topics/class-a-lease-negotiation)) typical on a 10-year Class A deal. ## Transit & access Metro Trains (suburban rail), Yarra Trams (the world's largest tram network), and bus. Melbourne Metro Tunnel opens 2025 — adds five new stations under the CBD. ## Tax 30% Australian corporate tax (25% for base rate entities). Victorian state payroll tax of 4.85-6.85%. R&D tax incentive available federally. ## Talent Deep professional services, banking, education, and creative talent. Strong feed from University of Melbourne, Monash, and RMIT. English-fluent professional base; multicultural workforce. ## Notable Class A buildings - **Rialto Towers** [](https://www.google.com/maps/search/?api=1&query=Rialto%20Towers%2C%20525%20Collins%20Street%2C%20Melbourne%20VIC%203000%2C%20CBD%20West%2C%20Melbourne%2C%20Australia&query_place_id=ChIJE1iKuU1d1moRjTo-xcXV-BU) · CBD West — Iconic blue-glass twin trophy; once Melbourne's tallest. - **Bourke Place** [](https://www.google.com/maps/search/?api=1&query=Bourke%20Place%2C%20600%20Bourke%20Street%2C%20Melbourne%20VIC%203000%2C%20CBD%20West%2C%20Melbourne%2C%20Australia&query_place_id=ChIJhz6IIUxd1moRtfJLdcJjvlU) · CBD West — BHP-anchored Bourke Street trophy. - **120 Collins Street** [](https://www.google.com/maps/search/?api=1&query=120%20Collins%20Street%2C%20120%20Collins%20Street%2C%20Melbourne%20VIC%203000%2C%20CBD%20East%2C%20Melbourne%2C%20Australia&query_place_id=ChIJLWsRLshC1moRrTpFQSRjPEE) · CBD East — Collins Street boutique trophy with Hoyts and EY anchorage. - **Wesley Place 130 Lonsdale** [](https://www.google.com/maps/search/?api=1&query=Wesley%20Place%20130%20Lonsdale%2C%20130%20Lonsdale%20Street%2C%20Melbourne%20VIC%203000%2C%20CBD%20North%2C%20Melbourne%2C%20Australia&query_place_id=ChIJVarCO8lC1moRgtOo3PW3tS0) · CBD North — Speculative Charter Hall trophy adjoining Wesley Church. - **Melbourne Quarter Tower** [](https://www.google.com/maps/search/?api=1&query=Melbourne%20Quarter%20Tower%2C%20699%20Collins%20Street%2C%20Docklands%20VIC%203008%2C%20Docklands%2C%20Melbourne%2C%20Australia&query_place_id=ChIJB9qa3FFd1moR_YujRB8opgg) · Docklands — Lendlease-developed waterfront trophy at Collins Wharf. ## Class A submarkets in Melbourne - [**CBD East (Collins Street)**](/cities/melbourne/cbd-east) — Trophy financial and legal spine. (trophy) - [**CBD West (Spencer Street)**](/cities/melbourne/cbd-west-spencer) — Established trophy with rail anchor. (trophy) - [**Docklands**](/cities/melbourne/docklands) — Trophy waterfront expansion. (prime) - [**Southbank**](/cities/melbourne/southbank) — Mixed-use trophy across the Yarra. (prime) - [**Parkville & CBD North**](/cities/melbourne/parkville-cbd-north) — Life sciences and university adjacency. (prime) ## Melbourne deep-dives - [Rents and incentives](/cities/melbourne/topics/rents-and-incentives) — What does Class A rent cost and what concessions are typical? - [Sublease market](/cities/melbourne/topics/sublease-market) — How deep is [sublease](/topics/sublease-strategy)">sublease availability and how does it price? - [ESG and LEED stock](/cities/melbourne/topics/esg-and-leed) — How much certified stock exists and what premium does it command? - [Transit and commute](/cities/melbourne/topics/transit-and-commute) — Which submarkets have the strongest transit access? - [Talent and salaries](/cities/melbourne/topics/talent-and-salaries) — What does the white-collar talent pool look like and how is it priced? - [Fit-out costs](/cities/melbourne/topics/fit-out-costs) — What does a Class A [fit-out](/topics/fit-out-capex)">fit-out cost per square foot? - [Flex vs lease](/cities/melbourne/topics/flex-vs-lease) — When does premium coworking beat a traditional lease? - [Taxes and incentives](/cities/melbourne/topics/taxes-and-incentives) — What corporate, occupancy, and property taxes apply? - [Neighborhoods overview](/cities/melbourne/topics/neighborhoods-overview) — Which Class A submarkets exist and how do they compare? - [Notable buildings](/cities/melbourne/topics/notable-buildings) — Which trophy assets define the market? - [Class A vs Class B](/cities/melbourne/topics/class-a-vs-class-b) — What is the spread between Class A and Class B and why? - [Leasing conventions](/cities/melbourne/topics/leasing-conventions) — What lease structures, terms, and concessions are normal? - [Expansion checklist](/cities/melbourne/topics/expansion-checklist) — What is the operational checklist for opening here? - [Relocation guide](/cities/melbourne/topics/relocation-guide) — How do you move into this market from another city? - [Frequently asked questions](/cities/melbourne/topics/faq) — Quick answers to the questions occupiers ask most. - [Operating expenses](/cities/melbourne/topics/operating-expenses) — What service charges, OpEx, and pass-throughs apply on top of rent? - [Growth and availability](/cities/melbourne/topics/growth-and-availability) — How tight is current availability and what does the pipeline look like? - [Sustainability pathways](/cities/melbourne/topics/sustainability-pathways) — How do tenants land net-zero or science-based-target leases here? - [Hybrid work policy](/cities/melbourne/topics/hybrid-work-policy) — How are hybrid policies shaping office demand here? - [Security and redundancy](/cities/melbourne/topics/security-and-redundancy) — What security, power, and connectivity redundancy are standard? - [Lab and R&D space](/cities/melbourne/topics/lab-and-r-and-d) — What does R&D-grade or wet-lab space look like in this market? - [Brand experience](/cities/melbourne/topics/brand-experience) — How do trophy buildings function as brand experiences and showpieces? - [Fund strategy and flag](/cities/melbourne/topics/fund-strategy-and-flag) — Which submarkets carry the strongest investor flag for funds? - [Exit and renewal](/cities/melbourne/topics/exit-and-renewal) — How do you handle a Class A renewal or exit cleanly here? - [Market cycle position](/cities/melbourne/topics/market-cycle-position) — Where is this Class A market in its cycle right now? ## Melbourne — frequently compared - [**Melbourne vs Bangalore**](/compare/bangalore-vs-melbourne) — APAC HQ shortlist: Bangalore vs Melbourne. - [**Melbourne vs Hong Kong**](/compare/hong-kong-vs-melbourne) — APAC HQ shortlist: Hong Kong vs Melbourne. - [**Melbourne vs Mumbai**](/compare/melbourne-vs-mumbai) — APAC HQ shortlist: Melbourne vs Mumbai. - [**Melbourne vs Seoul**](/compare/melbourne-vs-seoul) — APAC HQ shortlist: Melbourne vs Seoul. - [**Melbourne vs Shanghai**](/compare/melbourne-vs-shanghai) — APAC HQ shortlist: Melbourne vs Shanghai. - [**Melbourne vs Singapore**](/compare/melbourne-vs-singapore) — APAC HQ shortlist: Melbourne vs Singapore. ## Frequently asked questions ****How material are concession packages?**** : Material. Effective concession packages of 30-45% (combining free rent, fitout, and rent abatement) are standard on long-term Class A deals. ****What is the Melbourne Metro Tunnel impact?**** : The Metro Tunnel opens 2025 with five new underground CBD stations — materially expanding rapid-transit access to the CBD core and Parkville (university and life sciences). ****How does Melbourne compare to Sydney?**** : Melbourne trophy rents trade 25-30% below Sydney; CBD vacancy is higher; professional services depth is comparable. ## Editorial provenance Reviewed by [**Kenji Watanabe**](/about/authors/kenji-watanabe) — APAC contributing editor. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) ## Related topics - [**Class A Lease Negotiation**](/topics/class-a-lease-negotiation) — How to negotiate a Class A office lease — the playbook from LOI to signed deal. - [**Hybrid Workplace Strategy**](/topics/hybrid-workplace-strategy) — How to size, structure, and lease a Class A office for a hybrid workforce. - [**ESG / LEED for Tenants**](/topics/esg-leed-tenants) — How tenants evaluate, negotiate, and report on ESG performance in a Class A office lease. - [**Cross-border Expansion**](/topics/cross-border-expansion) — How to run a coordinated Class A office search across multiple geographies. - [**Fit-out Capex**](/topics/fit-out-capex) — How to budget, sequence, and govern Class A office fit-out capex. - [**Lease vs Flex**](/topics/lease-vs-flex) — When premium flex (coworking, managed office) beats a conventional Class A lease — and vice versa. --- Citation: Source: Class A Atlas (https://classa.info/cities/melbourne), updated 2026-04-15T00:00:00.000Z.