Week Ending 24 October 2025

Market Overview

Queensland’s commercial property sector continues to attract institutional and owner-occupier interest, with a strong performance in industrial, large format retail, and strata office assets. Key legal reforms – such as the Property Law Act 2023 (Qld) – are now in effect and reshaping how lease assignments and subletting are handled. Meanwhile, broader macro conditions and Olympic-driven investment are driving demand in urban and transport-linked nodes.

This Week’s Highlights

Deal Summary Table

Industrial & Logistics

• Kent Relocation Group has acquired a 3.39 ha greenfield industrial site at 38 Birdwood Cres, Redbank, for a future 9,000 sqm purpose-built facility (with container-rated hard-stand). The strategic location close to infrastructure and the south-east QLD customer base is cited as key.

• Gateway Capital, via its Industrial & Logistics Partnership, secured a 22,248 sqm logistics complex in Geebung from QIC for A$72.5 m. The asset is 91 % leased and located ~12 km north of Brisbane’s CBD in a core infill industrial node.

Retail & Large Format Retail (LFR)

• MA Financial is in advanced discussions to acquire the 44 ha+ Logan Hyperdome precinct (including home centre, village centre and development land) for a headline ~$678 m, at an initial yield of ~7 %. Plans include tenancy re-mix, activating dormant space (once occupied by Myer), and pursuing non-retail uses and surplus land sales.

Office / Strata Office

• A strata office floor (518 sqm) at Level 5, 344 Queen St, Brisbane (in the CBD’s Golden Triangle) sold for A$2.55 m (~$4,923 / sqm). The buyer, a local architecture firm, highlights the strength of owner-occupiers in the strata office market.

Other / Urban Mixed-Use

• A 515 sqm freestanding building at 5 Morse St, Newstead, leased to Urban Climb, was sold to a local private investor for $4.9M on a sub-5% yield. The site is code-assessable for 4 storeys.

Mixed-Use Development

• Broadway Projects QLD Pty Ltd lodged plans for its 93 Logan Rd, Woolloongabba site, which will restore the heritage-listed former Broadway Hotel and develop twin 24-level residential towers (282 units) behind.

• Mosaic Property Group purchased 91 Montague Rd, South Brisbane (a 4,282 sqm site) for ~$30 m, describing it as a “once-in-a-generation” riverfront site for a future luxury tower project.

General News

Illicit Tobacco Crackdown: Commercial Leasing Risks and Regulatory Shift

The Queensland Government has introduced draft legislation aimed at curbing illicit tobacco retailing, granting significant new powers to Queensland Health inspectors , including covert sting operations, lease disruption rights, and extended closure orders. Notably, the bill proposes (Elks, S. (2025,)):

• Closure orders: Illegal tobacco retailers may face long-term shutdowns.
• Lease termination rights: Landlords will be empowered , and in some cases obligated , to terminate commercial leases of offending tenants.
• Lessor penalties: Property owners who fail to act against known illegal operators may themselves be penalised.
• Oversight concerns: Civil liberties groups and the CCC have raised red flags over the absence of external authorisation or oversight mechanisms comparable to police covert operations.

Implications for commercial property:

• Retail landlords must intensify tenant due diligence and monitoring, particularly in convenience retail and strip shop settings.
• Shopping centre owners may face increased compliance exposure if illicit operators are discovered within their tenancy mix.
• Institutional landlords may re-evaluate their risk appetite for tobacco-aligned retail categories.

2032 Olympics Preparation: SEQ Infrastructure, Workforce & Policy Coordination

At a recent Future Brisbane roundtable hosted by The Courier-Mail (Riley, R. 2025) , industry leaders in transport, construction, tourism and development stressed that delivering the Brisbane 2032 Olympics legacy will require deep regional collaboration and immediate action in several key areas:

• Skills shortage: The construction pipeline far exceeds available local trades. Migration of skilled labour , including returning expats , is essential.
• TAFE and workforce reform: Reinvestment in vocational education is urgently needed to prevent dropout rates and support long-term infrastructure delivery.
• Licensing barriers: Queensland's construction licensing regime is seen as an obstacle to attracting interstate and international workers due to lack of mutual recognition.
• Transport bottlenecks: Brisbane's congestion is now worse than pre-2019 levels. Participants advocated for a major transport link akin to the Gateway Motorway to better connect the city’s north and west.
• Unified planning: Stakeholders urged SEQ’s 12 councils to adopt a “Brisbane City Region” approach to global promotion, procurement, and planning.

Implications for commercial property:

• Stronger long-term confidence in logistics, industrial and infrastructure-adjacent investment corridors.
• Retail and tourism sectors could see uplift in targeted precincts, but only if liveability and access issues are addressed.
• Developers may benefit from project approvals aligned with Olympic-related growth priorities, but delays due to labour shortages and regulatory lag remain a risk.

Final Take

This week shows Queensland’s commercial landscape is deepening in scale and maturity. Institutional buyers are entering, owner-occupiers remain active, and regulation is shaping the risk environment. Strategic site selection and compliance will be critical for success.

References

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

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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