Office – Sunshine Coast Office Portfolio Acquisition

Address: 20 Innovation Parkway, Birtinya & 5 Plaza Parade, Maroochydore

RM Capital has finalised the purchase of two major Sunshine Coast office buildings following an oversubscribed investor offering. The Birtinya asset sold for $12 million (yield 8.14%, 2678 m² NLA), while the Maroochydore asset transacted for $7.775 million (initial yield 5.92%, projected fully-let yield 6.50%). These transactions underscore the growing appeal of regional office markets (Herde, 2025).

Retail & LFR – Southport Park Shopping Centre

Address: Benowa & Ferry Roads, Southport

Institutional giant Charter Hall has acquired the triple-supermarket-anchored Southport Park Shopping Centre for $152.5 million. The 19,900 m² precinct sits on a 6.5 ha mixed-use site and is one of only ten such centres nationally. This acquisition highlights the continued institutional dominance in the non-discretionary retail sector (Wilmot, 2025).

Retail & LFR – Beenleigh Lifestyle Centre

Address: 137 George Street, Beenleigh

A high-net-worth investor has purchased the 4,180 m² Large Format Retail centre for $19.5 million, achieving a 5.66% yield. Anchored by national retailers including Supercheap Auto, Autobarn, Petbarn, and Jaycar, the asset demonstrates the yield compression occurring in prime LFR assets (Herde, 2025).

Office – CBD Strata Acquisition, Brisbane City

Address: Level 6, 371 Queen Street, Brisbane City

Boutique design firm Derlot has purchased a 250 m² floor within the heritage-listed Preston House for $1.2 million. The acquisition reflects continued owner-occupier strength in the CBD strata market, with businesses prioritising character assets in prime locations (Herde, 2025).

Medical – Strata Medical Investment

Address: 1/1808 Logan Road, Upper Mount Gravatt

A private investor purchased the 464 m² strata medical suite for $5.5 million, reflecting a sharp 5.78% yield. The property is leased to I-MED Radiology, confirming the premium investors are willing to pay for essential service tenants (Herde, 2025).

Industrial & Development – Bulimba Land Consolidation

Address: 58–64 Taylor Street, Bulimba

A private developer acquired 2,042 m² across three amalgamated sites for $5 million (plus GST). With redevelopment planned subject to council approval, this transaction highlights the scarcity of infill industrial land in Brisbane’s inner east (Herde, 2025).

Illicit Tobacco Crackdown – New Landlord Penalties

Queensland Health has executed its first major 90-day closure of an alleged illicit tobacco retailer under strengthened legislation. Landlords now face fines up to $166,900 and potential imprisonment if they knowingly permit illegal activity. This development significantly shifts liability, requiring commercial landlords to urgently audit tenant usage clauses and conduct regular inspections to mitigate legal exposure ("Illicit Tobacco Retailer Closed," 2025).

The shift in liability means landlords can no longer be passive regarding tenant operations. The risks have moved from purely reputational to severe financial and criminal penalties.

• Significant Liability Escalation: The introduction of fines up to $166,900 and potential imprisonment fundamentally changes the risk profile of commercial leasing. You are now effectively a secondary enforcer of the law.
• Definition of "Knowingly Permit": The legal threshold "knowingly permit" suggests that turning a blind eye to suspicious activity is dangerous. If a landlord ignores obvious signs—such as blacked-out windows, heavy foot traffic for a small shop, or lack of standard inventory—they could be deemed complicit.
• Urgency of Lease Audits: Landlords must immediately review the "Permitted Use" clauses in their leases. Vague terms like "retail store" or "convenience store" may need to be tightened to explicitly exclude the sale of illicit substances or require strict adherence to tobacco licensing laws.
• Mandatory Regular Inspections: Passive property management is now a liability. Regular, documented property inspections are essential to prove due diligence. Landlords need to ensure they have a paper trail showing they monitored the property and acted on any suspicions.
• Asset Risk: A 90-day government-enforced closure creates a "dead" asset. During this time, the tenant is unlikely to pay rent, and the landlord cannot easily re-let the premises, leading to substantial income loss on top of potential fines.

Gold Coast Industrial Growth – Yatala Surges 30.8%

The Yatala Enterprise Area has recorded a massive 30.8% increase in industrial property values, driven by intense demand and major projects including the $500 million Visy ARRC. Supply constraints and the diversification of industrial uses continue to drive capital appreciation ("Gold Coast Industrial Growth," 2025). This growth trajectory suggests yields will compress further as the corridor solidifies its status as a prime logistics hub.

Yatala has effectively transitioned from a "secondary" industrial precinct to a prime logistics hub. This is driven largely by the "land-banking" scramble ahead of the 2032 Olympics and the scarcity of large-format industrial land in Brisbane’s TradeCoast (City of Gold Coast, n.d.). The $500 million Visy Glass Re-manufacturing facility is the anchor tenant for this new era, but it represents more than just investment; it facilitates a strategic land swap. Visy’s move to Yatala frees up their South Brisbane site, which is earmarked for the International Broadcasting Centre for the 2032 Games (Visy, n.d.).

Brisbane CBD Retail Challenges

A Courier-Mail investigation revealed low weekend trading participation in the CBD, with 34 of 73 Queen Street Mall retailers closed on Sundays and foot traffic sitting at 82% of pre-COVID levels ("Brisbane CBD Retail Challenges," 2025). Industry leaders are calling for extended trading hours and live public activations to revitalise the precinct. Without strategic intervention, CBD retail rental growth risks stagnating compared to high-performing suburban non-discretionary centres (Brisbane Development, 2025).

The struggle of Brisbane CBD retail is a symptom of the "Donut Effect", where suburban centres thrive at the expense of the inner city, compounded by rigid trading hours. While suburban Westfields are booming with weekend family traffic, the CBD’s "Sunday Ghost Town" status creates a self-fulfilling prophecy (National Retail Association, n.d.). The recovery to only 82% of pre-COVID foot traffic suggests that the "return to office" mandate has plateaued, and without a weekend economy, CBD retail assets are underperforming.

Impact to Commercial Industry

• Lease Restructuring: Commercial landlords in the CBD may need to move away from fixed-rent models toward turnover-rent models with "activation clauses," effectively subsidising tenants to open on Sundays to build critical mass.
• Asset Repositioning: Owners of B-grade retail assets in the CBD will face pressure to convert retail space into "experiential" use (gyms, medical, entertainment) which is less dependent on traditional window-shopping foot traffic.
• Valuation Risks: If the weekend economy does not recover, the valuation spread between CBD retail and suburban neighbourhood centres will widen. Banks may view CBD retail as higher risk, impacting LVRs for refinancing.