Market Overview

Investor interest in Queensland commercial real estate remains robust across sectors, with strong demand for healthcare, logistics, and owner-occupier assets. High-profile transactions this week included Tangalooma Island Resort’s Eagle Farm acquisition, multiple medical asset sales, and Natgen’s $22 million office purchase in Cannon Hill. Meanwhile, labour shortages and Olympic infrastructure are putting pressure on future developments and fit-out timelines across the state.

This Week's Highlights

• Industrial: $21.45m TradeCoast site acquired by MaxCap and Centennial JV; Cosgrove Group buys Lawnton asset leased to AEC for $13.5m.

• Medical & Retail: Mitchelton, Auchenflower, and Seven Hills assets change hands for over $17m combined.

• Owner-Occupier: Tangalooma secures long-held Eagle Farm base; Springwood office sold to Australian Childcare Alliance.

• Office: Natgen acquires Cannon Hill asset for $22m; multiple small office assets transact.

• General News: Labour shortages threaten renovation and construction timelines across SEQ; luxury developer ordered to pay $6.1m in sunset clause dispute.

Industrial & Warehouse

33 Queensport Road, Murarrie

A joint venture between Centennial and MaxCap Group acquired a 38,750 sqm site for $21.45 million. Construction is underway on Gateway Industrial Park, which will include two warehouses and a cold storage facility. Completion is expected mid-2026 with an end value of $90 million.

768–772 Gympie Road, Lawnton

Cosgrove Group purchased this 5682 sqm AEC-leased warehouse for $13.5 million. The property, sitting on a 1.44 ha site, will be refurbished once the current lease expires in December.

Medical & Retail

87 Osborne Avenue, Mitchelton

An investor paid $7.285 million for a 417 sqm office to be converted into a medical facility leased to Evercare on a 10-year term. Yield: 6.15%.

104 Haig Road, Auchenflower

A tightly held medical asset sold at auction for $2.825 million on a 4.68% yield. The 421 sqm building has a 4.28-year WALE and two long-standing medical tenants.

28 Tallowwood Street, Seven Hills

A private investor acquired a large format retail centre anchored by Viva Leisure for $6.89 million on a 5.74% yield.

Owner-Occupier

931 Kingsford Smith Drive, Eagle Farm

Tangalooma Island Resort bought the 1433 sqm office/retail building for $7.225 million, securing its long-term corporate base. The site has redevelopment potential and offers 43 car bays on a 2960 sqm block.

6 Paxton Street, Springwood

Australian Childcare Alliance purchased a 498 sqm vacant office building for $4 million. The strategic location and availability of on-site parking made it a compelling acquisition.

Office

38 Southgate Avenue, Cannon Hill

Natgen acquired a three-level office building in Southgate Corporate Park for $22 million. The acquisition forms part of its $31 million South-East Queensland investment program.

11/996 Anzac Avenue

A 68 sqm unit sold for $338,888.

7/710 Brunswick Street

A 63 sqm unit sold for $640,000.

6/4–6 Innovation Parkway

A 585 sqm office sold for $2.47 million.

General News

Renovation Crunch Looms Amid Labour Shortage

Queensland needs 18,500 more building workers to meet housing targets while preparing for 2032 Olympic infrastructure. Developers like Aniko Group are fast-tracking projects to beat the looming shortage. For commercial real estate, this means increased costs and delays for renovations, shopfitting, and tenant fit-outs. Landlords and tenants should act early to secure trades before pressure peaks from 2028 to 2032.

Developer Loses $6.1M Penthouse Court Case

Cav Gasworks Pty Ltd, led by Damien Cavallucci, must pay $6.1 million to a buyer after unlawfully terminating a 2017 contract under a sunset clause and reselling the properties for more than double. The ruling underscores the legal risk of sunset clause misuse in high-end residential developments.

Final Take

This week’s transactions highlight the strength of Queensland’s commercial market in sectors like healthcare, logistics, and value-add office assets. While investor appetite remains high, looming construction labour shortages linked to Olympic infrastructure projects are poised to challenge timelines and costs for refurbishments and new builds. Early planning and decisive action will be key for stakeholders in the months ahead.

References

• Herde, C. (2025, June 12). Hotels a hot property. The Courier-Mail, p. 65.

• Herde, C. (2025, June 18). Deal secures future. The Courier-Mail, p. 79.

• Herde, C. (2025, June 18). Owner-occupier demand. The Courier-Mail, p. 82.

• Herde, C. (2025, June 18). Fund tunes up its northern exposure in Lawnton deal. The Courier-Mail, p. 83.

• Bleby, M. (2025, June 13). In Queensland, another 18,500 building workers won’t be enough. Australian Financial Review.

• Carson, V. (2025, June 18). Luxury Brisbane developer stung $6m in penthouse legal stoush. The Courier-Mail.

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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