Queensland Commercial Property Market Wrap – 22 May 2025

Market Overview

Queensland’s commercial real estate market held firm this week, with activity across industrial, retail, and office sectors. Key deals included the off-market sale of the Deagon Travel Centre, the heritage-listed IGA in Maleny, and a record-breaking office transaction in Bundall. Brisbane’s office sector still leads the Asia-Pacific in rental growth, but the pace is slowing as new supply enters and tenant caution grows. Investor interest in major mixed-use developments like The Barracks remains high.

Office Market Update

Brisbane CBD Office Sector

Brisbane continues to top the APAC region for prime office rental growth, with gross face rents up 14.2% over the past year. But the pace has cooled—quarterly growth slowed to just 0.5%.

More tenants are choosing to stay put, deterred by rising fit-out costs and tighter capital. New supply is on the way: 205 North Quay and 360 Queen Street will add over 90,000 sqm, both already 87% pre-committed. Despite this, vacancy is expected to rise from 10.2% to 12% by year-end, before tightening again to 8.5% by mid-2028.

Leasing incentives remain high at 38.5%, while investment activity has picked up. Transaction volumes hit $1.1 billion in 2024, with both local and offshore buyers returning to the market.

Retail Investment

Deagon Travel Centre, Brisbane North

A high-net-worth buyer snapped up the Deagon Travel Centre for $11 million in an off-market transaction. Anchored by Hungry Jack’s, Pearl Energy, and a car wash, the 5,555 sqm site delivers a 6.23% initial yield and a 7.1-year WALE. Just 16 km from Brisbane’s CBD, the location benefits from strong arterial links and a catchment of more than 119,000 people.

IGA Portfolio in Regional Queensland

Three IGA-anchored properties changed hands for nearly $30 million:

• Seasons IGA, Maleny: A historic, 2,843 sqm freestanding supermarket sold for $11.25 million.

• IGA Childers: A 1,047 sqm site traded for $4.5 million.

• Garbutt Central, Townsville: A Cornetts-anchored centre sold for an undisclosed amount.

The campaigns drew over 1,000 enquiries, showing continued demand for securely leased supermarket assets.

Industrial Market

30 Bellrick Street, Acacia Ridge

Dexus and Blackstone sold this 3.5-hectare logistics site to Hale Capital Partners for $30.2 million—well above its 2024 book value of $25.7 million. The estate includes five warehouses, B-double access, rail connectivity, and significant hardstand.

25 Harris Road, Pinkenba

A Singaporean buyer acquired this 4,164 sqm TradeCoast site for $4.05 million. The block offers short-term holding income and long-term development potential, transacting at a tight 4.26% yield. The previous owner purchased the land for $3 million in 2022.

Flagstone Logistics Estate, North Maclean

Charter Hall landed two major pre-leases at its $900 million estate:

• • Bunnings: 40,200 sqm warehouse + 800 sqm office

  • Dats: 18,000 sqm warehouse + 550 sqm office (10-year lease)

Both facilities target 5-star Green Star ratings and are due for completion in FY26.

Regional & Mixed-Use Sales

515–593 Sturt Street, Townsville

A Sydney investor bought this 7,590 sqm automotive site for $11 million. Long-term tenant NQ Auto Group has committed through to 2029, with options through 2049. The property generates $774,785 in net income per year, offering a 7.04% yield. The site includes a modern 2,302 sqm service centre and showroom, with strong traffic exposure.

Corporate Centre One, Bundall

RF CorVal sold this 11,500 sqm office tower to the City of Gold Coast for $109 million, setting a record for Gold Coast office deals. Key tenants include Commonwealth Bank and KPMG. The council also owns the neighbouring Wyndham Building, bought in 2023.

The Barracks, Petrie Terrace

Growthpoint listed The Barracks for $160 million. The 1.09-hectare mixed-use precinct features over 10,000 sqm of A-grade office space and retail tenants like Coles and Palace Cinemas. Located near Brisbane’s major infrastructure upgrades—including Cross River Rail—the site is expected to draw strong local and offshore interest.

Market Outlook

Queensland’s commercial property market remains in good shape. Demand for industrial and retail assets is strong, while Brisbane’s office market stabilises after a record run. Investors continue to favour long leases, national tenants, and strategic locations.

With the 2032 Olympics on the horizon and major infrastructure upgrades underway, Queensland is well-positioned for sustained growth through 2025 and beyond.

Source

1) Knight Frank. (2025, April). Brisbane CBD Office Market – April 2025. Retrieved from https://content.knightfrank.com/research/332/documents/en/brisbane-cbd-office-market-april-2025-12124.pdf

2) CBRE. (2025, May 19). Retail convenience asset changes hands for $11 million in a pre-market transaction. Retrieved from https://www.cbre.com.au/press-releases/retail-convenience-asset-changes-hands-for-11-million-in-a-pre-market-transaction

3) Burgess Rawson. (2025, May 20). Car yard’s $11m appeal. Retrieved from https://www.burgessrawson.com.au/news-insights/car-yards-11m-appeal/

4) The Industrialist. (2025, April 26). Singapore investor acquires TradeCoast hardstand sold over $4 million. Retrieved from https://www.theindustrialist.com.au/2025/04/26/singapore-investor-acquires-tradecoast-hardstand-sold-over-4-million-rwc-gateway-and-m

5) Charter Hall. (2025, May 20). Charter Hall secures pre-commitments with Bunnings and Dats at Flagstone Logistics Estate – Brisbane. Retrieved from https://www.charterhall.com.au/News/news-article/2025/05/20/charter-hall-secures-pre-commitments-with-bunnings-and-dats-at-flagstone-logistics-estate--brisbane

6) RealEstateSource. (2025, May 19). Hale snaps up another Brisbane industrial estate. Retrieved from https://www.realestatesource.com.au/hale-snaps-up-another-brisbane-estate/

7) Green Street News. (2025, May 20). RF CorVal sells GC office for $109m. Retrieved from https://greenstreetnews.com/article/rf-corval-sells-gc-office-for-109m/

8) Courier Mail. (2025, May 19). Heritage-listed shopping centre on the market. Retrieved from https://www.couriermail.com.au/business/prime-site/growthpoint-has-put-the-barracks-mixeduse-precinct-on-the-edge-of-the-brisbane-cbd-on-the-market/news-story/8491ed5512170d6cbe05b3f23ef5d194

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

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