McGees Wrap Up – 16 January 2026

Queensland Commercial Property Weekly Wrap-Up

Week Ending 16 January 2026

The Queensland commercial property market remains resilient entering the second half of January, bolstered by a significant jump in the NAB Quarterly Commercial Property Index to +11, which is the highest sentiment recorded in over five years. While the state's $116.8 billion infrastructure pipeline provides a strong foundation, the sector is currently navigating the immediate impacts of widespread flooding across the north and west, which has triggered emergency disaster funding for 31 local government areas. Investor interest continues to follow a "flight to quality" trend, particularly within the Brisbane CBD office market and premium regional leisure assets (Cullinane, 2026; NAB, 2026; QRA, 2026).

Weekly Transaction Summary

Commercial Office & Retail – St. Francis House Sold

181 George Street, Brisbane City QLD 4000

McGees Property Brisbane is pleased to announce the successful sale and settlement of St. Francis House. This 4-storey boutique heritage building presented a compelling opportunity to secure a freehold commercial asset in a trophy location, situated opposite the soon-to-be-opened Griffith University Brisbane City campus and the former Treasury Casino. The sales campaign generated strong competitive interest from local and interstate investors, culminating in a sale price of $4,900,000. The asset is anchored by EzyMart on the ground floor and benefits from its proximity to major landmarks like Irish Murphy’s and the Queen's Wharf precinct.

Leisure & Hospitality – Hamilton Island Acquisition

Hamilton Island, Whitsundays QLD 4803

In a landmark deal for the Australian tourism sector, global investment firm Blackstone has reached an agreement to acquire Hamilton Island from the Oatley family for approximately $1.2 billion. This transaction represents a major shift in the Whitsundays' commercial landscape, ending more than 20 years of family ownership. The sale includes a substantial portfolio of five hotels, over 20 restaurants, a 301-berth marina, and a commercial airport. Notably, 70 per cent of the 1,133-hectare island remains undeveloped, providing Blackstone with significant long-term value-add and development opportunities (Cunningham, 2025).

Source: (Cunningham, 2025)

Office & Development – 41 George Street Conversion

41 George Street, Brisbane City QLD 4000

Dexus and Marquette Properties are advancing Australia’s first full-scale conversion of a 27-storey office tower into purpose-built student accommodation (PBSA). The project at 41 George Street will deliver 1,200 student beds to the Brisbane CBD by July 2026. This adaptive reuse initiative involves complex structural modifications, including the relocation of air-conditioning systems and the installation of a new sandstone-inspired facade. The project is being positioned as a blueprint for repurposing underutilised B-grade office assets into high-demand residential stock ahead of the 2032 Games (Nadin, 2025).

Source: (Nadin, 2025)

Retail - Fresh and Save Warehouse Development

100-106 Elizabeth Street, Aitkenvale QLD 4814

Haben Property Group has officially lodged a development application for a Fresh and Save food warehouse at the former Kingsvale and Sunvale sites in Townsville. The 1.01-hectare development represents the grocery operator’s first entry into the North Queensland market. Following the demolition of the abandoned commercial properties, the new warehouse format will include an on-site bakery and butchery. This move reflects a broader trend of institutional owners repositioning distressed or vacant regional commercial assets into essential-service retail hubs (Leighton, 2025).

Source: (Leighton, 2025)

General News

• The DRFA support is delivered primarily through the Queensland Rural and Industry Development Authority (QRIDA) and includes:

  • Disaster Assistance Loans (Up to $250,000): Concessional loans (currently 1.37%) for repairing damaged premises or replacing lost stock for businesses with direct physical damage.
  • Essential Working Capital Loans (Up to $100,000): For businesses suffering loss of income due to disruptions, covering rent, rates, and wages.
  • Disaster Recovery Grants ($9.98m allocation): Dedicated to immediate clean-up and rapid trading resumption.

• Victoria Park Stadium Works Upheld: Federal Environment Minister Murray Watt confirmed the decision to allow the $3.8 billion Olympic Stadium at Victoria Park to proceed following a rejected Indigenous heritage challenge.
  Impact: Legal certainty provides security for ongoing Herston precinct investment (InDaily QLD, 2026).
  
  

• Cairns CBD Tenant Sentiment: Local business owners have voiced concerns regarding high commercial rents and CBD safety.
  Impact: This disconnect poses a vacancy risk, potentially driving a shift toward activation-based leasing models (The Cairns Post, 2026).

• Mandatory Disclosure Regime: The new Seller Disclosure Regime under the Property Law Act is in full effect.
  Impact: Standardised disclosures reduce "transactional friction" and increase transparency for buyers (Henry William, 2025).

Final Take

The Queensland commercial market is currently defined by high-stakes strategic transitions. The $1.2 billion Hamilton Island sale and the 41 George Street office conversion demonstrate that capital is flowing toward assets with unique value-add potential. Despite regional weather challenges, the state's macro outlook remains positive, supported by record-high investor confidence and a clear, legally secured path for major Olympic infrastructure.

References

Cunningham, C. (2025, December 24). Hamilton Island sold for $1.2bn. The Cairns Post.

Henry William. (2025, August 1). Recap: Update to property law in Queensland. Henry William Lawyers.

InDaily QLD. (2026, January 15). Decision made on bid to stop Brisbane’s Olympic stadium. InDaily QLD.

Leighton, S. (2025, December 29). Rubble to retail in works. Townsville Bulletin.

McGees Property. (2026). McGees Property Brisbane announce successful sale and settlement of 181 George Street.

NAB. (2026, January 12). Quarterly Australian Commercial Property Survey: Q4 2025. National Australia Bank.

Nadin, S. (2025, December 21). Brisbane CBD office block to become 1200-bed student digs. The Courier-Mail.

Queensland Reconstruction Authority [QRA]. (2026, January 14). Local governments able to access flood assistance. Queensland Government.

The Cairns Post. (2026, January 8). Central Business Dilemma: Residents reveal key problems. The Cairns Post.