It comes as experts reveal Melbourne’s office leasing recovery continues to lag behind other Australian capitals, where government-mandated return-to-office measures have driven a faster rebound in occupancy.

New analysis from international property firm Knight Frank has lifted the lid on who’s really calling the shots in Melbourne’s property game, with institutional investors, led by Australian Real Estate Investment Trusts (A-REITs), holding the keys to the city.

A-REITs are companies listed on the Australian Securities Exchange that own and manage income-producing properties, providing investors with a way to invest in real estate without buying physical properties.

Property powerhouse Charter Hall holds the largest portfolio of 13 buildings, the new research reveals, primarily in the Eastern Core and North Eastern precincts, including premium assets such as 171 Collins Street, 555 Collins Street and Wesley Place.

GPT Group followed closely with 12 assets, with Mirvac and Dexus also among the top institutional owners.

Superannuation funds Cbus, Rest, and Australian Super are included in the top 15 owners, alongside three institutional funds, two offshore investors, one bank and one private investor.

Smaller buildings in the CBD are typically held by high-net-worth individuals and syndicates – unlisted property trusts that do not offer the liquidity of publicly traded shares.

Knight Frank head of institutional sales for Victoria Trent Preece said Melbourne’s office leasing recovery had lagged other Australian capital cities, where return-to-office protocols accelerated office occupancy.

“However, the pace of office downsizing has slowed, and a growing number of tenants are now expanding again after outgrowing their reduced footprints,” he said.

“Office attendance continues to rise – particularly midweek – and more organisations are implementing structured in-office work policies.

“These shifts have begun to restore confidence in the leasing market, with positive signs emerging in buyer depth, investor appetite, liquidity and pricing.”

It follows Premier Jacinta Allan’s recent announcement of plans to enshrine the right to work from home two days a week – a move that has garnered fierce backlash from business leaders.

Mr Preece said the nature of institutional capital has also evolved, with a growing proportion now backed by offshore partners.

“Examples include GIC’s alignment with Charter Hall and Oxford’s partnership with Investa,” he said.

“Compared to Sydney, Melbourne has a lower proportion of direct offshore ownership and a stronger presence of local high-net-worth private investors.

“Between 2015 and 2020, Melbourne experienced a significant rise in direct offshore ownership, driven by strong underlying fundamentals and compelling growth prospects.

“However, this momentum has eased in recent years, primarily due to the introduction of higher foreign ownership taxes and a softening in the leasing market.”

He said domestic investor demand was already strengthening, and competition was expected to intensify further with anticipated interest rate cuts in the remainder of 2025.

Property Council Australia Victorian executive director Cath Evans said the shift to hybrid work had certainly shifted how office assets were viewed in the CBD.

“Occupiers are prioritising quality and amenity-rich environments, which has driven demand for premium assets with strong location advantages,” she said.

“However, demand for B-grade stock has also recently increased, indicating affordability of office space is still a key consideration.

“We expect demand for CBD offices to continue to grow, with a clear emphasis on buildings that support new ways of working.”

Ms Evans said Melbourne’s CBD traditionally maintained a more balanced mix, with mid-tier and private owners continuing to play a meaningful role in the asset base.

“In recent years there has been a gradual shift toward more institutional ownership, particularly in premium and A-grade assets, as investors sought quality and yield in a low-interest rate environment,” she said.

“At the same time, some offshore groups – particularly from Asia – entered the market, valuing the stability of Australia’s commercial property sector.”

But she said Melbourne continued to be burdened by a restrictive tax regime on foreign investment, which detracted investment in both residential and commercial assets.

The Property Council has called for the suspension of the Foreign Purchaser Additional Duty and Absentee Owner Surcharge, to attract greater investment moving forward.

“To boost investor confidence, we need major tax relief for both local and offshore developers, greater certainty around planning, and a clear pipeline of future development opportunities,” she said.

Melbourne’s biggest landlords:

Charter Hall

Charter Hall is the top investor in Melbourne’s office market, holding a total of 13 properties.

The ASX-listed property giant’s portfolio includes a 47-storey tower at 242 Exhibition St, Wesley Place Stage 1 and Stage 2 on Lonsdale St and office space at 570 Bourke St.

They also own a 34-level tower Argus Centre on La Trobe St, which was designed by well-known architect Nonda Katsalidis, and a 17-level building at 11 Exhibition St.

The Australian property development and funds management company was ranked the largest real estate investment manager in Australasia by Institutional Real Estate in 2022.

The GPT Group

Not far behind is the GPT Group owning a total of 12 properties in the city.

Their portfolio includes the 51-level Melbourne Central Tower on Elizabeth St, two National Buildings in the Docklands and the heritage listed Safe Deposit Building on Queen St.

They also co-own the accounting company EY’s building on Exhibition St and own the Queen & Collins precinct – which features historic, neo-gothic buildings with a modern office tower, creating a mixed-use destination for work, retail and hospitality.

The real estate investment trust has been publicly listed in Australia since 1971 and is one of the country’s largest diversified listed property groups.

Dexus

Australasian giant Dexus holds 10 properties across the CBD, including a 51-level office tower and adjacent 38-level building at 80 Collins St.

They also own the Flinders Gate office complex, which comprises two boutique buildings and a multideck carpark that adjoins Melbourne’s renowned Adelphi Hotel.

Dexus claims to actively manage an Australasian real estate and infrastructure portfolio valued at $50.1bn.

Mirvac

Australian property developer Mirvac takes in nine properties in Melbourne’s CBD.

This includes 224m skyscraper Bourke Place, large mixed-use complex Collins Place, and office tower at 699 Bourke St in the Docklands.

The company was founded in 1972 by Bob Hamilton and Henry Pollack and became publicly listed in 1999.

Lendlease

Australian multinational construction and real estate company Lendlease owns seven properties in the city.

The giant takes in an office building on 459 Collins St, and tower One Melbourne Quarter, also on Collins St opposite Southern Cross Station.

Other acquisitions include two office towers at 485 La Trobe St and the building on 459 Little Collins, which boasts a wellness and fitness centre within the precinct.

Lendlease has helped deliver some of the world’s most recognised real estate including Sydney’s Barangaroo precinct, Elephant Park in London, Singapore’s Paya Lebar Quarter and New York’s Claremont Hall, according to its website.

Walker Corporation

The majority of Walker Corporation’s portfolio is taken up with four towers at Collins Square, an award-winning commercial precinct home to a wide range of cafes, restaurants, essential services and more.

The privately-owned company, which has six buildings in the city, was founded in 1964 by Lang Walker and his father Alec as an earthmoving and civil engineering business.

Today, it is one of Australia’s largest private developers, with a $35bn-plus pipeline of projects across Australia and overseas.

Ownership remains with the Walker family following Lang Walker’s death last year.

Cbus Property

Superfund developer, Cbus Property, owns a total of five buildings in Melbourne.

They own Collins Arch at 447 Collins St – a $1.25bn development spanning a 6,000-square-metre city block on the city’s premier commercial and retail strip.

The precinct encompasses luxury residences, a five-star W Melbourne hotel, commercial office space, vibrant retail and dining offerings, and approximately 1,900 square metres of public open space, including the new Market Street Park and tiered amphitheatre.

They also co-own the Victorian Police Centre and City West Police Complex on Spencer St.

Cbus says their current portfolio exceeds $6.9bn, with a further $4.6bn of development work underway.

Investa

Australian real estate investment manager, developer and operator Investa says they have $14bn of assets under management.

This includes two properties in Melbourne – an office building at 120 Collins St and a 26-level building at 567 Collins St.

Investa is jointly owned by ICPF investors and Oxford Properties.

ANZ

Banking corporation ANZ could be considered an unexpected landlord, with the giant holding two properties in the CBD.

This is made up of the ANZ Centre on Collins St and the Ross House – a five-storey community-owned and managed heritage building in Flinders Lane.

Rest Super

Superannuation company Rest Super owns two properties in the city, including 140 William Street, a 41-storey 152m tall steel, concrete and glass building located in the western end of the CBD.

Constructed between 1969 and 1972, the building was designed by Yuncken Freeman and is meant to replicate the contemporary skyscrapers in Chicago, Illinois.

Rest Super also owns an office building at 717 Bourke St.

Deka Immobilien

Frankfurt-based real estate investment specialist Deka Immobilien owns two properties in Melbourne.

They hold a tower at 15 William St and commercial office Riverside Plaza on Flinders St.

Deka Immobilien calls itself one of Europe’s largest global real estate fund companies, creating value for their institutional and private investors, occupiers, and business partners for over 50 years.

Australian Super

Superannuation fund Australian Super co-owns corporate office The Urban Workshop and 42-storey office building Casselden Place, both on Lonsdale St.

Australian Super owns stakes in significant property projects including a portion of London’s Canada Water Masterplan and the King’s Cross Estate redevelopment, plus major Australian logistics facilities like Moorebank Logistics Park, according to their website.

Brookfield Australia

Global asset manager Brookfield Australia invests in long-life, high-quality assets and businesses in more than 30 countries around the world.

They co-own two properties in Melbourne being the East and West buildings of Southern Cross Tower.

Also known as 121 Exhibition Street, Southern Cross Tower, is a 161-metre skyscraper, built in 2004, that comprises 39 floors of office accommodation.

The complex is a twin tower. The East tower delivers 76,700 square meters of space over 39 floors. The West Tower provides 45,200 square metres and 22 levels.

The tower was once the location of Melbourne’s prestigious Southern Cross Hotel.

K-REIT

One of Asia’s leading real estate investment trusts K-REIT co-owns two buildings in Melbourne – the EY Building on Exhibition St and the Victorian Police Centre on Spencer St.

The company is listed on the Singapore Exchange and claims to have a portfolio value of $9.5bn, comprising properties in Singapore, Sydney, Melbourne and Perth, Seoul and Tokyo.

Source: Ownership data for the Melbourne CBD has been collated by Knight Frank’s research team, predominantly using Real Capital Analytics (RCA) data. The top ownership list has been calculated according to NLA. For consistency, assets with part ownership have been attributed to the main owner, rather than wholesale investors with part ownership. However, in cases where ownership was clearly 50/50, the half ownerships have been attributed to each owner. Due largely to complexities in ownerships, particularly part-ownerships, this list cannot be relied upon as being 100% accurate, but will give an understanding of the ownership landscape.

Disclaimer:Although high standards have been used in the preparation of the information, no responsibility or liability whatsoever can be accepted by Knight Frank Australia Pty Ltd for any loss or damage resultant from any use of, reliance on or reference to this information. As general information, this material does not necessarily represent the view of Knight Frank Australia Pty Ltd in relation to particular properties or projects.