Queensland’s commercial property market continues to show resilience despite higher interest rates, with Brisbane’s industrial and office sectors performing particularly well.
With the official cash rate at 4.35%, funding remains a key consideration for buyers, vendors and developers. Investors are increasingly selective, favouring quality assets with strong tenant covenants, secure income and genuine rental growth.
Brisbane Industrial Remains a Standout
Southeast Queensland’s industrial market remains one of the strongest commercial sectors in the country. Vacancy has tightened across key Brisbane precincts, supported by continued demand from logistics, transport, manufacturing and distribution businesses.
Limited new supply, combined with elevated construction and funding costs, is helping support rental growth and investment values.
Institutional demand also remains strong. Charter Hall recently acquired three logistics assets across Darra, Willawong and Acacia Ridge for a combined $192.4 million, highlighting continued demand for strategically located assets with quality tenants and long lease profiles.
Sale and Leaseback Opportunities
Sale and leaseback transactions are also gaining relevance. For businesses that own industrial property, selling the freehold while entering into a long-term lease can unlock capital without disrupting operations.
This structure can provide owners with additional capital while offering investors secure, long-term income.
Brisbane CBD Office Market Strengthens
Brisbane’s CBD office market is also strengthening, with solid leasing activity and tightening vacancy, particularly across prime-grade accommodation.
Limited new supply may place further pressure on the availability of quality office space, while professional services, government and legal occupiers continue to support demand.
Brisbane 2032: Opportunity and Pressure
Infrastructure investment ahead of the Brisbane 2032 Olympic and Paralympic Games is expected to support employment, population growth and confidence across Southeast Queensland.
However, rising construction costs and competition for builders, trades and materials may place further pressure on development feasibility. This could constrain future supply and support well-positioned existing assets.
What Does This Mean for Property Owners?
The market is becoming more selective rather than simply slowing. Quality industrial assets remain highly sought after, Brisbane’s office recovery is gaining momentum, and constrained development supply continues to create opportunities. For owners considering selling, leasing or repositioning commercial property, understanding how these conditions affect the individual asset is increasingly important.
My Agent Aus works with commercial property owners, investors and occupiers across Southeast Queensland to identify opportunities and achieve strong outcomes in changing market conditions.
Sources: RBA, ABS and Charter Hall. Figures represent the most recent published data available at the time of publication.
Disclaimer: General information only and not financial, investment, legal or property advice. Market conditions may change. Independent professional advice should be obtained where appropriate.