What is the average Class A rent in Melbourne?

Around 720 AUD/sqft/yr ($468 USD) across the broader Class A index. Trophy submarkets like CBD East (Collins Street) command 20–40% above that.

How many months of rent-free are normal in Melbourne?

14 months on a 7-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Melbourne?

The Melbourne Class A market is currently softening. Vacancy is 18.4%, which sets the negotiating context.

Headline Class A rent in Melbourne is around 720 AUD/sqft/yr ($468 USD), with 14 months of typical rent-free on a 7-year term.

Headline Class A rent: 720 AUD/sqft/yr ($468 USD).
Trophy submarket rents (CBD East (Collins Street)) push to roughly A$880/sqm/yr · ≈ $53.1 PSF/yr USD.
Typical concessions on a 7-year deal: 14 months free rent.
Vacancy stands at 18.4% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Melbourne Class A office rents and incentives

Headline Class A rent in Melbourne is around 720 AUD/sqft/yr ($468 USD), with 14 months of typical rent-free on a 7-year term.

TL;DR

Headline Class A rent: 720 AUD/sqft/yr ($468 USD).
Trophy submarket rents (CBD East (Collins Street)) push to roughly A$880/sqm/yr · ≈ $53.1 PSF/yr USD.
Typical concessions on a 7-year deal: 14 months free rent.
Vacancy stands at 18.4% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Melbourne are quoted in AUD per sqft per year. Across the broad Class A index the figure is 720, but the trophy tier in CBD East (Collins Street) reaches roughly A$880/sqm/yr · ≈ $53.1 PSF/yr USD. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Melbourne concessions on a 7-year Class A lease run to 14 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by 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.

Where rents land by submarket

CBD East (Collins Street) sits at the top end (~A$880/sqm/yr · ≈ $53.1 PSF/yr USD). Docklands clears around A$700/sqm/yr · ≈ $42.3 PSF/yr USD as the prime tier. The full submarket map is on the Melbourne city page.

Key facts

city	Melbourne
country	Australia
region	APAC
classARentLocal	720 AUD/sqft/yr
classARentUsd	$468/sqft/yr
vacancy	18.4%
typicalLeaseYears	7
typicalRentFreeMonths	14
submarkets	5
primeYieldPct	5.4%
trophyRent	A$880/sqm/yr · ≈ $53.1 PSF/yr USD
primeRent	A$700/sqm/yr · ≈ $42.3 PSF/yr USD

Frequently asked questions

What is the average Class A rent in Melbourne?: Around 720 AUD/sqft/yr ($468 USD) across the broader Class A index. Trophy submarkets like CBD East (Collins Street) command 20–40% above that.
How many months of rent-free are normal in Melbourne?: 14 months on a 7-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Melbourne?: The Melbourne Class A market is currently softening. Vacancy is 18.4%, which sets the negotiating context.

Editorial provenance

Reviewed by Kenji Watanabe — APAC contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

Full sources index · Submit a correction