If you’re planning an office lease renewal or relocation in 2026, here’s what matters:
For the full rental data, vacancy rates and incentive trends across Australia, read our latest Australian CBD Leasing Markets Report.
As we move further into 2026, there are clear signals emerging across Australia’s commercial leasing markets. Some are driven by sector shifts, some by how tenants are using space, others by what landlords are starting to deliver in response.
Here are the insights our team is watching closely, and why they matter for tenants.
“Once again, we’re seeing the tech sector shed areas of their workforce as AI becomes more impactful - continually reshaping business priorities and team structures. The pattern is becoming familiar: restructure, reduce, then rehire in different areas. As a result, office space is taking a hit. Take Tik Tok, for example, which have recently relinquished one of their floors in the Sydney Salesforce Tower. Across the market, tech companies are reassessing how much space they actually need and recognising the cost of a constantly fluid headcount.”
In 2026, flexibility is critical.
For tech businesses especially, locking in too much space (or having overly rigid lease terms) can quickly become a heavy financial constraint. Building flexibility into your lease will be crucial to staying agile and moving at pace.
“One trend we’re seeing come through is a renewed swing toward A-Grade buildings, particularly those offering strong amenity like third spaces, upgraded lift lobbies, and end-of-trip facilities. Tenants are still cost-conscious, but many are now looking more closely at how a building supports staff experience day-to-day. As a result, better-quality buildings that have invested in these areas are standing out. It’s less about a traditional ‘flight to quality’, and more about being selective. Tenants are willing to move up the quality curve, but only where the value is clear.”
For Melbourne tenants, it’s about understanding where that value sits.
Well-positioned A-Grade buildings with strong amenity may justify the move, particularly where incentives remain competitive.
At the same time, tenants still have options across the market, so comparing quality, cost, and overall experience remains key to making the right call.
“We’re seeing a noticeable shift in workplace expectations, particularly from leadership teams. While open-plan layouts remain popular, there’s growing demand for private, enclosed offices for CEOs, VPs and senior leadership. Using meeting rooms as a workaround isn’t cutting it anymore.”
Workplace design is becoming more balanced.
Tenants are looking for:
With it often costing ~$20k to retrofit a private office, we expect more landlords to start including these private offices upfront, making fitted spaces more practical and appealing.
“After a shortage of full-floor spec fitouts 18 months ago, landlords stepped in to bridge that gap. What we’re seeing now is this supply reaching the market, with more ready-to-go full-floor options available, creating a compelling opportunity for larger occupiers seeking plug-and-play solutions.”
Larger tenants can expect faster occupancy into high-quality fitted space, with reduced upfront capital outlay and stronger overall value. Increased availability at the full-floor level also introduces greater competitive tension, enabling more favourable commercial outcomes without compromising on layout or location.
We’re not seeing dramatic shifts, but we are seeing clearer priorities emerge.
For a deeper dive into market trends across Sydney, Melbourne, and Brisbane, download our full Market Trends Report or reach out to our team.
Navigating the commercial real estate market can be challenging, but it doesn't have to be done alone.
At Tenant CS, we work alongside tenants to help secure the right space on the right terms, with a focus on outcomes that genuinely move the needle.
Want to understand how you can improve your lease position? Chat with our tenant advisory team.
We acknowledge the Traditional Custodians of the lands on which we work. Our offices are located on the land of the Gadigal peoples of the Eora Nation and the Wurundjeri peoples of the Kulin Nation. We acknowledge their continued connection and contribution to land, water and community, and pay our respects to Elders past and present.
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