Market Overview

The commercial property market in Queensland is currently experiencing mixed conditions. On one hand, the market is facing challenges from changes in government economic policies. On the other hand, it is receiving a strong boost from major, long-term building projects.

Possible changes to the federal budget, specifically regarding negative gearing and capital gains taxes, have created uncertainty for the near future. This confusion makes it harder for some investors to borrow money and reduces their willingness to buy properties (Wilmot & Rogers, 2026).

Despite these challenges, South East Queensland remains very resilient. The preparation for the Brisbane 2032 Olympic and Paralympic Games has introduced a large number of infrastructure projects. This upcoming Olympic is achieving several positive outcomes for the local market:

• Helping the local commercial sectors grow quickly.

• Protecting the local area from wider global economic problems.

• Encouraging confident investments in prime inner-city locations (Colliers, 2026).

This Week's Highlights

Office - Southpoint Office Building

Address: 275 Grey Street, South Brisbane, QLD 4101

• The high-quality building provides 27,765 square metres of office space. While the total price is $255 million, the actual cost after some financial adjustments is $214.8 million.

• Secure Tenants: The building has reliable renters who have signed leases for an average of over eight years. Major companies such as Flight Centre and Virgin Australia have their main offices there. It also includes a large shopping area with stores such as Woolworths and McDonald's. This purchase is considered a smart financial move. The building generates good rental income and is located in South Brisbane. This is a highly desirable area where very few offices are empty and rent prices are growing steadily  (Wilmot, 2026).

Office - Milton Freestanding Headquarters

Address: 6 Mayneview Street, Milton, QLD 4064

• The building provides 774 square metres of office space across two floors. It is fully set up and ready for the new owners to move in immediately. It also includes safe, gated parking for 21 vehicles. The property was sold by SLR Consulting, a company that had owned and worked in the building since 2012.

• The buyers paid a premium price for this space. This transaction shows that businesses highly value offices that are already finished. Currently, building new offices in Brisbane is very costly, and it is difficult to find available tradespeople (Herde, 2026a).

Office/Showroom - New Farm Inner-City Freehold

Address: 5 Lamington Street, New Farm, QLD 4005

A private investor has successfully acquired a versatile inner-city commercial asset at 5 Lamington Street, New Farm, for $7 million following a highly competitive expressions of interest campaign that drew more than 100 inquiries. Situated on a prominent 1,031 square metre site, the asset comprises a two-level, 600 square metre office and showroom building with 10 dedicated car parks. The property is currently partly vacant, with the remainder under lease to stable corporate and civic tenants, including the Brisbane City Council, RSPCA, and an international pharmaceutical firm. The sale underscores the ongoing scarcity of premium freehold assets within New Farm's highly constrained and tightly held commercial footprint (Herde, 2026c).

Retail & LFR - Ampol Burleigh Heads

Address: Pacific Motorway Onramp, Burleigh Heads, QLD 4220

A private investor has secured a blue-chip fuel and convenience asset, paying $10 million for the Ampol service station situated directly on the southbound Pacific Motorway onramp at Burleigh Heads. The strategic 1-hectare freehold landholding commands an exceptional logistics position on the high-exposure transport corridor linking Brisbane to the Gold Coast, which carries more than 110,000 vehicles daily. The transaction reflected a sharp net yield of 5.24 per cent, underpinned by a secure net lease to Ampol generating $523,502 per annum, with lease options extending through to 2045. The campaign drew substantial interest from southern syndicates underwriting both the long-term land value and non-discretionary income profile (Herde, 2026b).

Development - St Lucia Riverfront Block

Address: 178-180 Macquarie Street, St Lucia, QLD 4067

A rare riverfront double-block development site spanning 1,513 square metres has been sold to a luxury apartment developer for a staggering $20.42 million after an intense marketing campaign that generated over 220 inquiries. The premium parcel, located on the immediate edge of the University of Queensland campus, features 30 metres of direct river frontage with views toward the Brisbane central business district. Zoned for High-Density Residential (HDR2) allowing for a potential 15-storey tower subject to council approval, the transaction reflects a land rate of $13,496 per square metre. The site currently houses two substantial riverfront dwellings, offering near-term options for luxury development in a highly restricted submarket (Foster, 2026).

Development - Fortitude Valley James Street Precinct

Address: 171-181 Robertson Street, Fortitude Valley, QLD 4006

A private civil engineering firm has swooped on a prime commercial landholding known as "Robertson on James" in the tightly held James Street lifestyle precinct. The 1,651 square metre super-prime development site, positioned diagonally opposite the 5-star Calile Hotel, features two commercial buildings combining 1,769 square metres of gross lettable area and 24 car parks. The asset was acquired as a tenanted investment, returning a net holding income of $1,187,907 per annum from stable tenant covenants. Demolition clauses built into the active leases allow the purchaser to secure full vacant possession by 2028 or earlier, unlocking the site for a luxury mixed-use, hotel, or commercial development project subject to council approval (Schlesinger, 2026).

Industrial - Rocklea Logistics Asset

Address: 1537 Ipswich Road, Rocklea, QLD 4106

A major industrial logistics asset positioned on a substantial 3.1-hectare landholding has successfully changed hands. Located within the core southern industrial transport corridor of Brisbane, the large-scale manufacturing and warehouse facility attracted competitive inquiry from corporate owner-occupiers and institutional groups seeking immediate scalable footprint expansions. Transaction specifics and final pricing remain tightly under wraps, but the deal underscores the robust demand for low-site-cover industrial parcels along prime Queensland logistics links (Colliers Brisbane, 2026).

General News

• Howard Smith Wharves 2.0 Redevelopment Approved: Brisbane City Council has granted formal development approval for the highly anticipated $500 million Howard Smith Wharves 2.0 master plan. The major riverside project will introduce a 106-room boutique luxury hotel featuring an over-river swimming pool, wellness facilities, a brand-new live music stage at Felons Barrel Hall, and extensive public civic spaces.
  Impact on Commercial Property Industry: This landmark approval dramatically increases prime tourism and hospitality infrastructure capacity ahead of 2032, driving significant asset appreciation along the riverfront corridor and setting a precedent for complex over-water commercial precinct renewals (Riley, 2026a).
• Brisbane CBD Claims Title for Most Expensive Parking: Fresh data reveals that Brisbane has retained its position as the most expensive central business district in Australia for casual parking, with rates rising 1.1 per cent over the past year to an average of $81.72 per day, narrowly surpassing Sydney. Concurrently, strict local planning policies regarding minimum apartment parking allocations are adding up to $113,000 per unit to residential development costs.
  Impact on Commercial Property Industry: High parking costs and strict statutory supply constraints continue to bolster alternative commercial asset classes like fringe-office hubs, while challenging inner-city residential development feasibility amid escalating delivery costs (Tilley, 2026).
• Olympic Aquatic Centre Designs Sent Back to Drawing Board: The Games Independent Infrastructure Co-ordination Authority has rejected early architectural design submissions for the new National Aquatic Centre at Spring Hill, ordering proponents to scale back plans to prevent structural budget blowouts. The authority reaffirmed its commitment to delivering the venue within the broader $7.1 billion federal and state funding envelope.
  Impact on Commercial Property Industry: Strict financial accountability measures from the infrastructure authority signal tighter margins for tier-one contractors and architects, demanding highly efficient, cost-disciplined project delivery frameworks across future Olympic civic tenders (Riley, 2026b).

This week final take

References

• Colliers. (2026, May 22). Game on with SEQ growth. The Courier-Mail.
• Herde, C. (2026a, May 22). Room for expansion. The Courier-Mail.
• Herde, C. (2026b, May 22). Driving interest in $10m servo sale. The Courier-Mail.
• Herde, C. (2026c, May 22). Race for inner city gem. The Courier-Mail.
• Wilmot, B. (2026, May 27). Billionaire Paul Lederer makes $255m bid for Southpoint with new fund. The Australian. https://www.theaustralian.com.au/business/property/commercial/billionaire-paul-lederer-makes-255m-bid-for-southpoint-with-new-fund/news-story/1e9a8cca605538d913bec7cc71c20b78
• Riley, R. (2026a, May 28). Green light for $500m redevelopment: HSW 2.0 plans approved. The Courier-Mail.
• Riley, R. (2026b, May 28). Brisbane 2032: National Aquatic Centre design plans deemed not 'within budget' by GIICA. The Courier-Mail.
• Tilley, E. (2026, May 28). Brisbane leads nation in CBD parking pain. The Courier-Mail.
• Wilmot, B., & Rogers, D. (2026, May 22). Budget blow to housing: Biggest fall in prices in 40 years. The Courier-Mail.