The Brisbane commercial property market remains resilient, supported by strong economic fundamentals that continue to sustain occupier demand and investor confidence.

The industrial sector, in particular, is experiencing sustained momentum, driven by large-scale infrastructure investment, stable occupier demand, and ongoing supply constraints.

The Vacancy & Average Prime Rents graph below demonstrates strong take-up this quarter, which has driven a further decline in Brisbane’s industrial vacancy rates to 3.7%. This is excellent for landlords, as reduced vacancy levels underpin rent stability and bolster capital values.

Prime rents increased by 0.9% in the last quarter. While modest, this growth represents continued confidence in the sector despite higher construction costs and tighter financing conditions.

As vacancy levels revert toward a more balanced market, the pace of rental growth is expected to moderate across Brisbane’s commercial landscape. Nevertheless, investment volumes have been particularly strong - reaching $1.7 billion in 2025, already surpassing the $1.3 billion recorded for the entirety of 2024. With a substantial pipeline of assets currently on market or in due diligence, total transaction volumes are on track to exceed $2.0 billion this year.

Key Points:
• Investor sentiment rebounds - after a sluggish period, investors are progressively returning, particularly into logistics, industrial, and well-positioned office assets.
• Industrial and logistics strength continues - occupier demand driven by e-commerce, supply chain optimisation, and major infrastructure links remains a tailwind.
• Macro-economic and interest rate risks - the timing and magnitude of future rate cuts, inflation, and capital availability remain critical variables.

While the outlook remains positive, some cautionary points exist: interest rate shifts, global economic uncertainty, and the supply of speculative industrial space.

If you’re looking for tailored advice on how current market conditions could impact your property’s performance, the Johnson Real Estate Commercial team would be happy to help.

Contact Jeff Cannon today on 0413 158 015 to discuss your asset and explore strategies to maximise its return.

‍Source: Cushman & Wakefield

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