McGees Wrap Up – 30 January 2026

Queensland Commercial Property Weekly Wrap-Up

Week Ending 23 January 2026

Market Overview

The Queensland commercial property market has demonstrated significant resilience and growth, finishing the previous year with a 61.1% surge in transaction volumes to $21.35bn (Herde, 2026). This momentum has carried into early 2026, with investor appetite particularly strong for medical, industrial, and neighbourhood retail assets that offer long-term security. The average transaction size has increased by over 56%, signalling a shift toward high-quality, institutional-grade investments as capital deployment accelerates across the state's growth corridors (Herde, 2026).

Weekly Deal Summary

Medical – Icon Cancer Centre, Chermside

7-8/956 Gympie Road, Chermside

This strata-titled medical asset was purchased for $14.5m on an 8.28% purchase yield. The 1,145 m² facility is fully leased to Icon Cancer Centre until May 2030, with a five-year option. The property features a purpose-built 26-chair day oncology hospital and 61 exclusive car bays. The acquisition was supported by a fully subscribed $8.5m equity raise (Herde, 2026).

Industrial – Morgan Park Manufacturing Hub

56 Kenilworth Street, Morgan Park

Located in Warwick, this 6,299 m² industrial property sold for $8.75m at an 8% purchase yield. The facility serves as the national manufacturing hub for RXI Group, who recently committed to a new 12-year lease with a 10-year option extending to 2047. The sale price was noted as being below replacement cost (Herde, 2026).

Retail & Large Format Retail – Gubuda Gordonvale Shopping Centre

Gubuda Gordonvale Shopping Centre, Gordonvale

Woolworths' development arm, Fabcot, divested this recently completed Far North Queensland neighbourhood centre for $25.45m to an interstate private investor. The sale reflected a 5.5% yield. Anchored by Woolworths, which occupies 85% of the centre’s gross lettable area, the 3,880 m² asset is also supported by five specialty tenancies (The Courier-Mail, 2026).

Development – Northshore Hamilton Residential Site

9 Hercules Street, Hamilton

Clarence Property sold this 1,850 m² site for $17m to a private buyer. The property includes an existing office building with 1,977 m² of net lettable area and comes with development approval for a 27-level residential tower comprising 189 apartments. The site is situated within the Northshore Hamilton Priority Development Area (Herde, 2026).

General News

• Queensland tourism leaders are advocating for a permanent Australia Day long weekend to provide a consistent economic boost before the February low season. With hotel occupancy exceeding 80% in Brisbane and the Gold Coast this week, such a move would stabilise cash flow and rostering for the hospitality and hotel sectors, while increasing foot traffic for retail precincts (Pierce, 2026).
• The State Government's Regional Infrastructure Fund is successfully unlocking development-ready land across major growth corridors. This policy shift is directly impacting the industrial and development sectors by easing supply constraints for shovel-ready sites, particularly in the South East Queensland region.

Final Take

The Queensland market is entering 2026 with strong fundamentals, characterised by high transaction volumes and a clear preference for assets with strong tenant covenants or significant development upside. While the industrial and medical sectors remain favourites for yield seekers, the aggressive bidding for residential infill sites and the peak performance of the hospitality sector during long weekends suggest that investors are capitalising on the state's robust population and tourism growth.

References

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• Herde, C. (2026, January 23). Medical asset and industrial property trades. The Courier-Mail, 48-49.
• Herde, C. (2026, January 23). Developer bowled over. The Courier-Mail, 48.
• Herde, C. (2026, January 23). Future looking sky high. The Courier-Mail, 49.
• Pierce, J. (2026, January 23). Queensland tourism leaders call for permanent Australia Day long weekend boost. The Courier-Mail.
• The Courier-Mail. (2026, January 23). Woolies divests FNQ gem. The Courier-Mail, 48.
• The Courier-Mail. (2026, January 23). Investor nets Bribie Island office for $2.6m. The Courier-Mail, 49.
• The Courier-Mail. (2026, January 23). Qld tops in recovery of property market. The Courier-Mail, 49.