Confidence in Queensland’s commercial property market remains high, with strong demand across all key sectors — retail, office, industrial, and hospitality. Yields are holding firm, and quality assets are attracting both local and interstate buyers. This week’s wrap features major sales, fresh leasing activity, and insights into the next phase of Australia’s hotel sector.

This Week’s Highlights

• Retail: Kedron mixed-use complex changes hands for $20.7 million; new Portside Wharf buyer confirmed.

• Industrial: Quanta Investment Funds expands with Mackay cold storage deal; more activity in Kedron and Townsville.

• Hotel & Leisure: Sunnybank budget hotel sells well above valuation; Redcape adds more Sunshine Coast pubs.

• Development & Infrastructure: Redevelopment of the Glass House Mountains service centre gets underway.

Retail

255–257 Gympie Road, Kedron

A mixed-use complex in Brisbane’s northern suburb of Kedron has been sold for $20.7 million to a private investor, delivering an 8% yield. The property includes retail, commercial, and childcare facilities across four freestanding buildings, totalling 4,578 sqm on a sizable 8,909 sqm land parcel. It brings in $1.8 million in annual rent and is fully leased to seven tenants, with scope for future development thanks to its Mixed Use zoning and strategic location just 6.5 km from the CBD.

Industrial

2–10 Titanium Drive, Paget (near Mackay)

Quanta Investment Funds has picked up a cold storage facility in Paget, just outside Mackay, for $10.56 million. The asset will seed Quanta’s new Titanium Drive Logistics Trust, which is targeting an 8.6% return. The 3,717 sqm facility is leased to Woolworths subsidiary PFD Food Services and includes freezer, chiller, and temperature-controlled rooms, plus dry storage and admin space, all on a 5,420 sqm block.

69 Bristol Road, Kedron

Melissa and Wade Woodcroft have bought a mixed-use building in Kedron for $2.8 million. The 810 sqm site includes office, showroom, and warehouse space, and is zoned for low impact industrial use. The couple plans to convert the property into a New York loft-inspired space for their own construction and design businesses.

646–658 Ingham Road, Mount Louisa (Townsville)

Quanta has also added a warehouse in Mount Louisa to its portfolio, purchasing the 8,217 sqm property for $10.6 million. Tenants include AMA Group, Shamrock Civil, and Carroll Engineering Services. With just 26% site coverage, there’s plenty of room for future expansion or development.

Office

179 Given Terrace, Paddington

Sari Property Investments has secured a fully leased office/retail building in Brisbane’s inner-west for $4.25 million. Located on a high-profile corner block in Paddington, the two-storey, 575 sqm building sits on 817 sqm and is leased to four long-term tenants including Ray White Paddington and Stowe Electrical. The deal achieved a 4.82% yield and a strong building rate of $7,391/sqm.

Hotels & Leisure

223 Padstow Road, Eight Mile Plains

The Sunnybank Star Hotel has changed hands for just over $15.2 million — about $6 million above the bank’s valuation. The buyer, a Brisbane-based Chinese Australian investor, plans to continue operating the 60-room hotel, which generated $1.1 million in revenue last financial year. The site covers 8,200 sqm and may be considered for redevelopment in the future.

Sunshine Coast Pub Portfolio

Redcape Hotel Group continues its buying spree with the $80 million acquisition of the Maeva Hospitality portfolio. The deal includes four large-format pubs — Bli Bli Hotel, Baringa Tavern, Parklands Tavern, and Brightwater Hotel — along with nine bottle shops. These venues generate over $63 million in combined turnover and have a weighted average lease expiry (WALE) of more than 45 years.

Development

Glass House Mountains, Sunshine Coast

Construction has kicked off on the $24 million redevelopment of the northbound Glass House Mountains service centre. The project, a joint venture between Dexus Convenience Retail REIT and Deluca Corporation, will deliver a modern travel stop featuring a Shell service station, On The Run (OTR) convenience retail, expanded EV charging stations, and fast food outlets like McDonald’s, Hungry Jack’s, and Guzman y Gomez. The development is fully pre-leased with an average lease term of 18 years and is due for completion by year-end. Redevelopment of the southbound site is scheduled to start in 2026.

Hotel Market Insights

According to JLL, Australia’s hotel supply boom is winding down. Since 2020, more than 14,000 rooms have been added across eight capital city markets, but high construction costs and tough financing conditions are making new developments harder to justify.

JLL expects a shift toward upgrading older hotels instead of building new ones. Brisbane and the Gold Coast added over 1,000 rooms each during this cycle and will likely focus on refurbishments going forward.

While new luxury brands like W, Ritz-Carlton, and Capella have helped lift room rates and drive revenue growth across the sector, older or lower-quality hotels are facing demand pressure. Owners are now turning to renovations and conversions to stay competitive in a changing market.

Sum up

Queensland’s commercial real estate market continues to show strength, with activity across every major sector. Investors are chasing long-term value, whether through high-yielding assets, redevelopment opportunities, or fund launches. Industrial and hotel assets remain in the spotlight, and the state’s ongoing infrastructure upgrades and urban growth make it one to watch.

Reference

JLL. (2025). Australian Hotel Investment Review and Outlook 2025. Jones Lang LaSalle. https://www.jll.com.au/en/trends-and-insights/research/australian-hotel-investment-review-and-outlook-2025

Green Street News. (2025, April). Quanta buys cold storage facility near Mackay; Kedron retail asset sold; Sunnybank Star Hotel trades above valuation [Property market coverage]. https://greenstreetnews.com/australia

Quanta Investment Funds. (2025). Quanta Investment Funds acquires cold storage facility to seed Titanium Drive Logistics Trust. https://quantainvest.com.au/quanta-investment-funds-6-6-million-acquisition-in-mackay

Dexus Convenience Retail REIT. (2025). Glass House Mountains service centre redevelopment announcement. https://www.dexus.com/investor-centre/listed-funds/dexus-convenience-retail-reit

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

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