Melbourne Office Market Turns a Corner as Tenant Demand Strengthens and Future Supply Dries Up
Tenant enquiry has hit its strongest levels in years, just as Melbourne’s development pipeline begins to thin dramatically, according to Knight Frank’s latest research.
2 min
Melbourne’s CBD office market is showing early signs of a turning point, with Knight Frank recording 83 tenant representation briefs in Q2 2026, following 81 in Q1; the strongest start to a year since 2022.
At the same time, after three office projects scheduled for completion by the end of 2026, no new office construction is currently anticipated.
Knight Frank Partner and Head of Research and Consulting, Victoria, Dr Tony McGough, said the market’s fundamentals are improving despite ongoing challenges on the investment side.
“What we’re seeing is a growing disconnect between current market sentiment and the medium-term supply outlook,” he said.
“Tenant demand has strengthened significantly, rents continue to rise and, once the current development pipeline is completed, there is very little new stock coming behind it.”
Melbourne CBD prime face rents have increased by 5.2% over the past year, McGough noted, despite vacancy rates hovering around 19% and expected to rise further through 2026.
He said the lack of future construction activity is setting up tighter market dynamics ahead, as demand continues to recover.
Prime net face rents rose to an average of $773 per square metre across the CBD, up 5.2% year-on-year and 0.8% over the quarter, while incentives edged up marginally in Q2 to average 48.1%.
Rental growth remains concentrated in the better locations and better buildings.
Knight Frank Partner and Joint Head of Office Leasing, Victoria, Simon Hale, said occupiers were becoming more active as business confidence improved.
“The leasing market has become noticeably busier over the first half of 2026,” he said.
“We’re seeing a growing number of occupiers testing the market and taking advantage of favourable leasing conditions, particularly for high-quality space in premium and A-grade buildings.”
Hale added that despite incentives remaining elevated, quality buildings continue to outperform, and tenants with major requirements are increasingly recognising the benefit of securing accommodation well ahead of their lease expiries.
Investment activity, however, remains subdued.
Only $286 million in Melbourne CBD office transactions have been recorded year-to-date, while prime yields softened by a further 13 basis points over the quarter to average 7.02%; their highest level since 2013.
For Central Element, the start of work at Pearl represents another step in the company’s growing eastern suburbs pipeline.
All three vehicles will form part of a broader charitable initiative benefiting Big Brothers Big Sisters of America, the American Red Cross and Starlight Children’s Foundation
Apple’s first foldable, the $1,999 iPhone Duo, combines an iPhone and iPad Mini experience—but its size, weight and price come with compromises.
4 min
As I watched a Netflix show on Apple’s first foldable, the iPhone Duo, I had two surprising thoughts.
The first: Maybe I don’t need my iPad Mini anymore.
The second: Uh oh, am I about to spend $1,999 on a phone?
I didn’t think folding phones were for me. I’ve been testing Android versions from Samsung and Google since 2019, and those early editions came with too much screen and too many compromises.
Fast forward seven years, and the technology has come a long way. Apple—in its very Apple way—has also come up with some hardware and software trickery to make up for some shortcomings of the basic design. My desire for a folding phone before today was zero. After today, it’s a lot more than zero.
I’m not ready to recommend the Duo, which ships on Oct. 23, just yet. Not until I am able to test it more fully, so be on the lookout for that review in a few weeks. But from what I experienced at Apple Park on Wednesday, I could actually picture myself using this new half-phone, half-tablet hybrid.
Crease camouflage
For months, I’ve been using Samsung’s Galaxy Z Fold 8, a similarly squat, passport-shaped foldable that opens up to a larger screen. It’s impressively thin and can easily fit into the infuriatingly tiny pockets in women’s pants and dresses. Samsung did a lot of work to minimize the crease—the dip between the two halves of the big interior display—but it’s still clearly there.
When I held the iPhone Duo open, the crease was barely visible. As I slid my finger across the display, I could feel it, but it’s more subtle than Samsung’s. Most of the time, the screen looked as flat and smooth as the one on an iPad.
Apple employed both software and hardware techniques to camouflage the crease. The matte surface of the interior 7.6-inch screen minimizes reflections to hide it. (Samsung’s Fold 8 screen is shiny.)
And as you begin to open or close the iPhone Duo, the interface shifts the controls and content away from the center crease. If, say, you’re watching a video on the outer screen, you can open the Duo to switch to the bigger display within. A black fade marks the transition. You don’t see the video full screen until the phone is completely flat.
Heavy handed
My second observation was that, when the Duo is closed, in phone mode, it was harder to use one-handed than I expected.
In the keynote trailer and press release, Apple touted how thin the Duo is. It’s marketed as the thinnest iPhone ever—when open.
But it’s actually thicker and heavier than most of its Android competitors. The Duo weighs 254 grams, and is 11.3 millimeters thick when closed. The Samsung Galaxy Fold 8 is just 201 grams, with a thickness of 9.7 millimeters. Google’s Pixel 11 Pro Fold is 239 grams and 10.1 millimeters.
Because the Duo is also wider than a standard iPhone, I found it quite a challenge to type.
I admit, I do have smaller-than-average hands. So I consulted my colleague Rolfe Winkler, who has a larger grip. He agreed the Duo feels big.
Apple rearranged the interface on the outer screen so it looks different than traditional iPhones. The dock and control center are off to the right to be more reachable. Committing to the Duo as your main device will require adjustments in your handling. You will have to learn a new way to use and type.
Work and play
My most surprising takeaway? I feel a pull toward this device.
I always thought that combining an iPhone and an iPad would mean bigger compromises. The battery life is about the same as the 18 Pro (up to 24 hours of “regular use” on a single charge), though I’ll need to verify that in my real-world testing. And it’s also as durable, with the same IP68 dust- and water-resistance rating as the rest of the iPhone lineup.
There are trade-offs, for sure. Trying out the camera, I immediately missed the 8X zoom in my Pro model. The Duo has just 2X zoom, which wouldn’t cut it for the dozens of pictures I take of my kid every day.
But the dual screens unlock new photo functionality. You can see what your shot looks like from the outside screen. As someone who has tried tirelessly to self-direct a family photo—or a spouse—I am very eager to try this out more.
Foldables, I initially thought, were for classic mobile-warrior jet-setter types, who never sit at a desk and are always on calls. For that crowd, the Duo can run two apps side-by-side.
Me, I’m more of a bed binge-watcher and ebook reader. That’s what my beloved iPad Mini is for.
Watching videos on the Duo is a nice experience—nice enough that you forget the screen is 0.7 inches smaller than the iPad Mini’s. The main screen is also a 4:3 aspect ratio. Very similar, by the way, to the IMAX edition of the Odyssey.
Because I wasn’t able to snag a ticket to one of the sold-out screenings, I will be watching Christopher Nolan’s version of Homer’s epic on the Duo, just as the director intended. (Just kidding! Sort of.)
The Duo costs $800 more than an iPhone 18 Pro, and I’m not sure I want to spend that premium on a first-generation Apple device. But I’m not ruling out the idea that a Duo might one day be in my future. Stay tuned for my full review.
On October 2, acclaimed chef Dan Arnold will host an exclusive evening, unveiling a Michelin-inspired menu in a rare masterclass of food, storytelling and flavour.
Scotch whisky expert, luxury hospitality strategist and Keeper of the Quaich inductee Ross Blainey is bringing a new philosophy of luxury experiences to Citizen Kanebridge.
