Newstead, A Thriving Commercial Hub

Overview of Newstead

Newstead is an inner-city suburb of Brisbane located just 2–3 kilometres northeast of the CBD. Bounded by the Brisbane River and flanked by Fortitude Valley and Teneriffe, Newstead has rapidly transformed from an old industrial area into one of Brisbane’s trendiest mixed-use precincts. It is now highly sought-after for its blend of modern residential developments, vibrant retail and dining, and emerging office spaces. For commercial property owners and investors, Newstead offers a compelling mix of proximity to the CBD, a lifestyle-rich environment, and a strong local economy, making it an attractive location to buy, lease, or invest in commercial real estate.

Location & Accessibility

Situated roughly 1.5–2 km from Brisbane’s CBD, Newstead enjoys excellent connectivity and accessibility. Major arterial routes like Breakfast Creek Road and Ann Street link the suburb to the city centre and northern suburbs, while Brisbane Airport is only ~15 minutes away via Kingsford Smith Drive, a key advantage for businesses with interstate or international travel needs. Public transport is convenient: the popular CityGlider bus service runs through Newstead, connecting to the CBD and West End, and the Teneriffe Ferry Wharf (CityCat) is on Newstead’s doorstep for river transport. Although Newstead itself does not have a train station, Fortitude Valley and Bowen Hills stations are nearby, providing rail links across Greater Brisbane. This easy accessibility means customers, clients, and employees can reach Newstead with minimal fuss, and foot traffic from locals and visitors is strong, especially around its retail precincts.

Lifestyle and Amenities

The heritage-listed Newstead Gasworks frame is now an iconic centerpiece of a modern retail and dining precinct. Newstead’s appeal goes beyond just location – it offers a dynamic lifestyle that benefits local businesses. The heart of the suburb is the Gasworks Plaza, a vibrant retail, dining and entertainment hub built around the restored historic gasometer frame (a local landmark). Here you’ll find upmarket cafes, award-winning restaurants, bars, and a full-line supermarket, attracting a steady flow of residents, office workers and visitors day and night. Popular establishments – from trendy brunch spots to the famed Newstead Brewing Co. – make the area a foodie destination. For shopping, James Street’s boutique retail strip is only a short walk away in the Valley, and the nearby Emporium complex (on the Newstead/Valley border) adds further retail and hospitality options.

In terms of recreation and lifestyle amenities, Newstead has plenty to offer. The suburb boasts waterfront parklands and riverwalks along the Brisbane River, including Newstead Park and the Teneriffe Riverwalk, which provide green space and leisure opportunities that office workers enjoy during breaks and locals use for exercise. The presence of these amenities enhances the live-work-play environment in Newstead – a key selling point for businesses wanting to locate in an area that their employees and clients will love. Excellent gyms, health and wellness studios, and even boutique art galleries are dotted around the area, contributing to Newstead’s creative and entrepreneurial vibe. All these attractions and conveniences mean that commercial properties in Newstead benefit from a high-amenity setting that can help attract quality tenants and customers.

Demographics & Community Profile Highlights

Newstead’s community profile underscores why the area is attractive for commercial investment. The suburb (grouped with Bowen Hills in official statistics) has experienced fast population growth – from about 11,436 residents in 2016 to roughly 17,534 in 2021. That’s a surge of over 50% in five years, reflecting the boom in apartment developments and the influx of young professionals. This growth trajectory is expected to continue, with projections of around 25,000–30,000 residents by 2041. Such population growth translates to an expanding customer base and workforce in the immediate area, a positive indicator for retail and service businesses.

Demographic profile: Newstead’s population is notably young and affluent. The median age is 33 years, and a striking 85% of residents are of working age (15–64) – well above the Brisbane average – with very few children or retirees living locally. This points to a high concentration of young professionals, office workers, and entrepreneurs residing in the area. Education and skill levels are high, and many residents work in white-collar and creative industries. Crucially for businesses, local spending power is strong: the median personal income in Newstead-Bowen Hills SA2 is about $73,000 per year (≈$1,405 per week), significantly higher than the Brisbane city median, and median family income is around $151,600 per year. In fact, only 3% of families in the area are classified as low-income, compared to 5% in a comparable suburb like West End, underscoring the area’s relative affluence and disposable income. High incomes in the local catchment mean robust support for quality retail, dining and personal services – a boon for commercial landlords targeting premium tenants.

Another striking statistic is Newstead’s extremely low unemployment rate, which stood at roughly 1% as of late 2022. Out of a labour force of ~15,000, only 266 people were unemployed. This essentially full employment environment reflects the strong economy and job opportunities in and around Newstead. It also means local businesses have access to an employed, cashed-up customer base. Additionally, the community is very dynamic – about 75% of Newstead’s residents have moved address in the last 5 years, indicating a steady influx of new residents (often young renters or buyers drawn to the area’s apartments). This continual renewal can drive demand for new services, eateries, and shops, creating opportunities for businesses and, in turn, for investors who own commercial spaces.

Key Demographics – Newstead–Bowen Hills SA2

Table: Selected community profile statistics for Newstead (source: 2021 Census and Qld Govt Resident Profile).

What these figures mean for investors: a young, growing and affluent local population tends to support strong demand for retail, hospitality and services, and helps create a lively precinct that attracts further businesses. High household incomes and employment levels suggest that businesses in Newstead can thrive on local patronage, and commercial landlords can expect a market of quality tenants aiming to cater to this demographic. The rapid population growth also signals ongoing development – and with it, potential capital growth for well-located commercial properties.

Commercial Property Market Trends in Newstead

Newstead forms part of Brisbane’s “Fringe” commercial property market (often grouped with Fortitude Valley and Bowen Hills). In recent years the area’s commercial real estate has seen high demand and tightening vacancy. According to recent market reports, the office vacancy rate in the Urban Renewal precinct (Newstead–Valley area) dropped to around 11.8% by late 2023, down from over 13% earlier in the year. This is slightly better than the overall Brisbane Fringe average (~13.9% vacancy in Jan 2024) and a marked improvement from the highs during the pandemic. In fact, by early 2025 Brisbane’s near-city vacancies hit a decade low – the Fringe overall was about 10.7% vacant – reflecting strong absorption of space as businesses flock back to quality offices. Newstead’s modern, quality builds are benefiting from this “flight to quality” trend; larger contiguous office spaces in Newstead have been leasing up, driving vacancy down. For landlords, this means easier tenant attraction and potentially shorter downtimes between leases compared to a few years ago.

Rental rates in Newstead’s commercial sector are robust. Prime office space commands gross face rents in the order of $600–$700 per square metre per annum (full-service rent including outgoings). For example, one report put average prime gross rents around $678/m² in the Fringe market. Landlords do still provide incentives (rent-free periods or fit-out contributions) to secure tenants – incentives average about 35–40% of the lease package in the Fringe – but with vacancies falling and limited new supply, rentals have been rising. Net effective rents (after incentives) have grown at some of the fastest rates in Australia in the last year, and further rental growth is forecast as demand remains high. In practical terms, this means if you own a quality office or retail space in Newstead, you can expect healthy rent levels (often lower than CBD rents, but offering better value to tenants) and increasing rent reviews over time, boosting your rental income.

On the investment side, Newstead’s commercial property yields have adjusted in line with broader market trends. During the low interest rate era, yields tightened significantly – prime assets in Newstead have traded on yields as low as ~5% in recent years (for example, a fully leased brand-new office at 11 Commercial Road sold on a 5% yield in 2022). As interest rates rose in 2023–2024, yields softened a bit across Brisbane’s fringe. Currently, core market yields for prime Fringe assets are in the range of roughly 6.8% to 8.25%, while secondary-grade or older properties might see yields in the mid-8% to low-9% range. In Fortitude Valley (the closest comparison sub-market), recent A-grade office yields are around 7.5–8%. Newstead’s most premium properties likely sit at the tighter end of the range (high-6% yields), given the suburb’s popularity and limited supply of commercial sites. Investor demand for Newstead assets remains solid – one industry report noted that “properties such as 33 Longland Street (a Newstead office opposite Gasworks) are in short supply... with strong interest from interstate syndicates and investment firms for Brisbane near-city assets”. This demand helps underpin property values.

Leasing trends: Many businesses drawn to Newstead are seeking boutique office spaces (100–300 m² suites are very active in the leasing market) as well as showroom and retail tenancies to tap into the affluent local market. Notably, Newstead has seen a wave of new commercial developments in the pipeline, which is both a sign of confidence and a factor to watch. Projects like a new boutique office building at 56 Doggett Street and a major mixed-use development planned for 166–180 Breakfast Creek Road will add thousands of square metres of office space in coming years. So far, this new supply has been met with strong absorption (tenants quickly taking up space), but investors should keep an eye on development approvals as future competition. Overall, however, the outlook is positive: no oversupply is imminent and developers are pacing projects to match demand. With the 2032 Brisbane Olympics on the horizon, infrastructure upgrades and economic growth are expected to further boost the inner-city commercial property market.

Table: Key commercial property market figures for Newstead/Brisbane Fringe.

In summary, Newstead’s commercial real estate market is characterized by tightening vacancy, strong rental growth, and solid (if slightly adjusted) investment yields. For landlords, this means improved prospects for securing tenants and growing rental income. For investors, Newstead offers yields that are relatively attractive in the current climate (higher than CBD yields, which are often sub-6%, yet underpinned by robust tenant demand). The mix of stable rental returns and future capital growth potential in Newstead is a major drawcard.

Pros of Newstead for Business & Investment

For those considering buying or leasing commercial property in Newstead, the suburb offers numerous advantages:

• Outstanding Location: Newstead’s proximity to the CBD (a 5-minute drive or short ferry/bus ride) gives businesses city-like convenience without the CBD price tag or congestion. It’s centrally located in the booming Inner North, adjacent to other trendy suburbs (Fortitude Valley, Teneriffe, New Farm) which enhances its appeal and foot traffic.

• High Disposable Income Customer Base: The local population’s affluence and youth mean strong support for businesses. Restaurants, retailers, and service providers in Newstead enjoy patronage from residents who have higher-than-average incomes and a taste for quality offerings. This makes it easier for commercial tenants to thrive, in turn benefiting landlords with successful tenancies.

• Lifestyle and Amenity-Rich Environment: Newstead’s vibrant atmosphere – with Gasworks Plaza, dining and nightlife options, fitness centres, and riverfront recreation – is a magnet for talent and customers. Businesses located here can leverage the suburb’s “cool factor” and convenience to attract employees and clients. After-work drinks, client lunches, or team wellness activities are all at your doorstep. This environment adds value to commercial properties (companies often pay a premium to be in amenity-rich locations).

• Modern Infrastructure & Attractive Buildings: Because much of Newstead’s development is recent, commercial premises here are often modern, stylish, and tech-friendly (or converted character spaces with unique appeal). Think high ceilings in converted woolstore offices or sleek new office towers with energy-efficient design. Modern premises generally command good rents and attract quality tenants.

• Strong Market Fundamentals: As outlined above, Newstead’s commercial market has low vacancies and rising demand. It is seen as a resilient market with growth prospects, given the forecast population increases and Brisbane’s broader economic growth. The area has a limited supply of land, which bodes well for property values (scarcity factor). Moreover, major upcoming projects (like Waterfront Brisbane and the Olympics infrastructure) are likely to benefit the whole inner city, including Newstead.

• Transport & Connectivity: Excellent transport links (road, bus, ferry, nearby train) make it easy for customers to get to Newstead businesses and for staff to commute. The area is also well-served by ride-share and has multiple parking garages in new developments, easing one traditional challenge of city-fringe locations.

• Prestige and Branding: Newstead has cultivated a reputation as a trendy, up-market locale. Businesses based here can benefit from that prestige by association. For example, a showroom or gallery in Newstead can carry a certain cachet (as opposed to a less fashionable area), and an office address here signals a modern, innovative image. This “cool factor” can indirectly boost business and therefore makes commercial spaces in Newstead highly desirable.

Challenges and Considerations (Cons)

While Newstead is highly attractive, savvy investors will also weigh a few potential challenges:

• Higher Entry and Rental Costs: Newstead’s popularity means property values and rents are on the higher side. Commercial landlords face a higher buy-in price per square metre compared to less sought-after suburbs, and tenants pay premium rents. For investors, yields can therefore be tighter (in the 6–7% range for prime assets, and even ~5% in top-tier cases). This is a positive sign of asset quality, but it does mean initial costs and competition for acquisitions are high.

• Limited Land and Supply Constraints: Being a small inner-city suburb, Newstead has a finite supply of commercial-zoned land. Most prime sites have been developed, so opportunities for large new commercial builds are limited (hence the few upcoming projects are notable). This scarcity drives value but also means limited choices for businesses seeking space, potentially pushing some to consider nearby areas. Investors may have to be patient or look at value-add opportunities (e.g., refurbishing older stock or redeveloping).

• Traffic and Parking Pressure: As a busy mixed-use hub, Newstead can experience traffic congestion, especially around peak hours or when events are on. The popularity of Gasworks and increase in residents mean local streets see heavy use. Parking can also be a challenge – on-street parking is limited and time-restricted. Many newer commercial buildings include parking, but older sites might not. Businesses that rely on drive-in customers or have a large staff may need to secure additional parking or encourage public transport use. These factors require consideration (though they are common in any inner-city location).

• Competition from Neighbouring Precincts: While Newstead is desirable, it is part of a cluster of inner-north suburbs that are also vying for businesses. Fortitude Valley, for instance, has seen significant commercial development and has the advantage of a train station and entertainment district; likewise, nearby Bowen Hills and the Showgrounds area are being rejuvenated with new office parks and the King Street dining precinct. Newstead must be viewed in context – some tenants or buyers might choose the Valley for slightly lower rents or Bowen Hills for larger floor plates. Investors in Newstead should stay aware of what’s happening around the corner (more on this in the comparison below).

• Market Sensitivity to Interest Rates: As with all commercial property, valuations in Newstead are influenced by broader economic conditions. The recent softening of yields shows that if interest rates rise, property prices can plateau or dip as investors seek higher returns. While Newstead’s underlying demand is strong (which provides resilience), owners should be prepared for the possibility of value fluctuations in the short term due to macroeconomic factors. However, long-term prospects remain positive given the suburb’s fundamentals.

• Predominantly Office/Retail – Sector Exposure: Newstead’s commercial scene is largely office and retail/hospitality. There is limited industrial property (most former industrial sites have been redeveloped). Investors looking for industrial or logistics exposure won’t find much here – they’d need to look a bit further out. Similarly, if the office sector faces a downturn (e.g. another surge in remote work), fringe offices could be impacted. Diversification or choosing mixed-use properties (with ground-floor retail, etc.) can mitigate this risk.

Despite these considerations, most would agree that Newstead’s pros strongly outweigh the cons. With prudent due diligence – such as ensuring good parking arrangements, and buying at a fair price – investors can manage these challenges and take advantage of Newstead’s many strengths.

Comparison with Neighbouring Suburbs: Teneriffe & Fortitude Valley

Newstead sits amidst a trio of popular inner-north suburbs, each with its own character. Here’s how it compares, especially from a commercial property perspective, to its immediate neighbours Teneriffe and Fortitude Valley:

Newstead vs. Fortitude Valley

Fortitude Valley (often just “The Valley”) adjoins Newstead to the west and is well known as Brisbane’s nightlife and entertainment precinct. It has a long-established commercial area and in recent years has seen growth in office space (e.g. the redevelopment of the RNA Showgrounds area and new office towers on Wickham Street). In terms of commercial vibe, Fortitude Valley is busier and a bit more hectic – it hosts live music venues, nightclubs, Chinatown, and the Brunswick Street Mall retail strip. This means foot traffic can be high, especially at night and weekends, which benefits retail businesses. Fortitude Valley also has the train station (the only train stop outside the CBD in the inner north), a significant plus for accessibility.

From a market standpoint, Fortitude Valley has a larger volume of office stock (it’s often grouped with Newstead in data). Historically, the Valley had higher vacancy and slightly lower rents than Newstead’s newer builds, partly due to an abundance of older office stock. However, recent trends show Valley vacancies falling to around 10–11% by mid-2024, nearly on par or even slightly below Newstead’s, thanks to strong leasing activity. Fortitude Valley’s office yields have been reported around 7.5–8% for A-grade in 2024, which is similar to – or a touch higher than – Newstead’s prime yield range. This suggests investors see perhaps a tad more risk or less boutique appeal in the Valley compared to tightly-held Newstead, but the gap is narrowing as the Valley gentrifies.

Choosing Newstead vs The Valley: For landlords, Newstead might offer a more polished, upscale image – it’s quieter, with a modern village feel (anchored by Gasworks), whereas the Valley is edgy and bustling. Some high-end tenants (say, a professional services firm or a corporate tech office) may prefer Newstead’s ambience and the “executive” feel of the precinct. On the other hand, a bar, nightclub or a fashion retailer might do better in Fortitude Valley with its late-night scene and youth crowds. Fortitude Valley also has more heritage commercial buildings (if one is seeking character-filled spaces like converted warehouses, the Valley and neighbouring Teneriffe have many classic brick woolstores, whereas Newstead’s stock is mostly contemporary builds apart from a few heritage remnants). Investors may find slightly more affordable prices in the Valley for comparable property, but Newstead’s smaller size and cachet can command a premium. Both suburbs are benefiting from inner-city growth, and in practice many businesses treat the whole Newstead–Valley–Bowen Hills area as one contiguous market when searching for space.

Newstead vs. Teneriffe

Teneriffe lies immediately south of Newstead and is often mentioned in the same breath. However, Teneriffe is primarily a residential enclave, famed for its heritage woolstore apartments and riverside charm. It has a very high-end residential demographic (Teneriffe is one of Brisbane’s most expensive apartment markets) and a quieter atmosphere due to the lack of major through-roads. Commercial activity in Teneriffe is relatively limited – you’ll find boutique cafes, a few restaurants, some creative offices (design agencies, boutique consultancies) often tucked into converted woolstore buildings, and perhaps some specialty retail. There is no large shopping centre or office tower in Teneriffe; for big amenities, residents stroll over to Newstead’s Gasworks or to James Street in New Farm/Fortitude Valley.

From an investment perspective, Teneriffe offers fewer commercial opportunities simply because of scale – much of the suburb is residential zoned. A small number of woolstores have ground-floor commercial spaces (which can be very character-laden and desirable for niche businesses), and there are some modern low-rise office buildings, but nothing on the scale of Newstead’s developments. Vacancy in Teneriffe’s commercial spaces is usually low simply because supply is low; tenants that cater to the affluent locals (think artisanal eateries, gyms, boutiques) do well. Rents for those rare spaces can be high per square metre, but the tenant pool is limited to certain lifestyle businesses due to the suburb’s boutique nature. In short, Teneriffe complements Newstead – it provides a cachet and customer base, but if you’re an investor looking for mainstream commercial assets (like multi-storey office or retail centre), you’re more likely to find that in Newstead or the Valley.

Choosing Newstead vs Teneriffe: If your goal is to run or lease out a destination dining venue or a luxury boutique, Teneriffe might appeal for its exclusivity and scenic riverside backdrop. However, Newstead will generally offer far greater footfall and versatility for commercial use. Newstead can host anything from large format retail (e.g. furniture showrooms along Breakfast Creek Rd) to corporate headquarters, thanks to its commercial zoning and infrastructure. Teneriffe is ideal for smaller-scale ventures – a wine bar in a quiet street or a yoga studio serving local residents. Investors often find Newstead a more dynamic market for commercial property, whereas Teneriffe’s value is largely in its residential prestige (with the exception of some mixed-use gems). Notably, many Newstead residents are Teneriffe’s customer base and vice versa, given how closely linked the areas are (one can walk from Newstead’s heart to Teneriffe’s in minutes). Thus, a business in Newstead can still tap into Teneriffe’s high-income population easily.

Summary of Comparisons: Newstead sits between the energy of Fortitude Valley and the exclusive calm of Teneriffe, offering a balance of both. It has a bit of the Valley’s commercial bustle (especially around weekday lunchtimes at Gasworks) without its grittier nightlife elements, and shares the upscale residential feel of Teneriffe while being much more commercially active. For an investor, Newstead might be seen as a sweet spot – benefitting from the growth and foot traffic of its neighbours, but with its own distinct identity and a controlled supply of property. As Brisbane’s inner-north continues to develop, all three suburbs are likely to prosper, but Newstead’s blend of lifestyle and commerce will continue to make it one of the prime choices for businesses and commercial property owners.

Conclusion – Investing in Newstead

Friendly, vibrant, and ever-evolving, Newstead has firmly established itself as a premier commercial location in Brisbane. The suburb profile we’ve explored shows a place with strong fundamentals: a growing and affluent population, top-notch amenities, and a commercial property market that offers both steady income and growth potential. Whether you’re a landlord with space to lease, or an investor eyeing your next acquisition, Newstead provides an environment where quality businesses want to be – from boutique offices to trendy restaurants and retailers. Its advantages, from location to lifestyle, create a magnetic pull for tenants, which in turn underpins property values and rental returns.

If you’re looking to capitalise on this thriving area – be it by listing your Newstead commercial property for sale/lease, or by securing a foothold in the suburb – it pays to have experts on your side. McGees has a deep understanding of the Newstead market and the wider Brisbane commercial landscape. We’re here to offer professional, personalised advice to help you make the most of your investment. Get in touch with our team to discuss Newstead opportunities – we can assist with everything from market appraisals and sales strategy to leasing campaigns tailored to the unique appeal of this suburb.

Newstead’s success story is still being written, and you have the chance to be part of it. With the right approach and guidance, your commercial property venture in Newstead can flourish in this exciting, opportunity-rich suburb. Now is a great time to act – as Newstead continues to grow and prosper, you’ll be glad you positioned yourself in one of Brisbane’s most dynamic commercial communities.

Give us a call today 07 3231 9777

References

Australian Bureau of Statistics. (2021). 2021 Census QuickStats: Newstead - Bowen Hills. Retrieved from https://www.abs.gov.au

Courier Mail Online. (2024, November 12). Elite South East Queensland Suburbs. News Corp Australia.

Property Council of Australia. (2024). Brisbane Office Market Report - January 2024

Property Council of Australia (2024) Summary media release

Queensland Government Statistician's Office. (2024). Brisbane Inner North Community Profile. Retrieved from https://www.qgso.qld.gov.au

Realcommercial.com.au. (2025). Recent Sales Reports: Newstead Commercial. Retrieved from https://www.realcommercial.com.au

Urbis. (2024). Brisbane Fringe Commercial Property Update. Retrieved from https://www.urbis.com.au

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