The Queensland commercial property sector has entered February with robust momentum, following a 2025 calendar year that saw transaction volumes surge by 61 per cent to a total of $21.35 billion (Radar, 2026). While recent inflation data has prompted a more cautious outlook regarding the interest rate trajectory, the market is currently supported by a significant supply-demand imbalance across the office, industrial, and retail sectors. Brisbane’s office market remains one of the most stable in Australia, with vacancy rates expected to tighten as the development pipeline remains constrained through to 2027 (KPMG, 2025). Investor appetite is increasingly pivoting toward defensive assets with strong underlying land value and income security, particularly in the northern growth corridors and inner-city precincts (Herde, 2026). The following table outlines the key transactions recorded this week. The diversity in yields, ranging from the sharp 4.85 per cent for prime brand-name retail to the 9.4 per cent premium for inner-city strata office, illustrates a bifurcated market where capital is pricing risk and land-banking potential with high precision. The current transactional landscape reflects a "flight to quality" and "flight to land," where private and institutional investors are willing to accept tighter yields for assets with national tenant covenants or significant future development upside. The 4.85 per cent yield achieved for the Windsor Officeworks sits at the lower end of the retail yield spectrum (typically 5.0 to 6.0 per cent for prime assets), signifying the high value placed on strategic inner-metropolitan freeholds (Herron Todd White, 2025). Conversely, the 9.4 per cent yield in South Brisbane offers a substantial risk premium, attractive to investors seeking high immediate cash flow to offset rising debt servicing costs. Overall, the market is transitioning into a phase where income returns are increasingly vital to offset capital volatility, with the industrial and non-discretionary retail sectors leading total returns at approximately 6.4 per cent (KPMG, 2025). Division 5, an expanding local cybersecurity company, has secured a new head office at 155 Wharf Street after its previous premises were sold to an owner-occupier. The tenant has entered into a five-year lease with a further option for the entire three-level building, which provides 689 m² of gross lettable area and eight on-site car parks. The building, owned by Bundaberg Sugar, was selected due to its lower price point and capacity to accommodate an additional 20 to 40 staff over the next two years. The gross annual rent is approximately $200,000 plus GST (Herde, 2026). Level 1, 220 Melbourne Street, South Brisbane A Victorian-based private investor has acquired a whole-floor strata office asset in South Brisbane for $3.5 million. The 572 m² space, located at 220 Melbourne Street, is fully occupied by four tenants across six tenancies and was sold with a WALE of 2.32 years. The sale price represents a 9.4 per cent yield on a net annual income of $330,658. The property includes 21 on-site car parks and is situated opposite the $1.2 billion West Village development (Herde, 2026). 143-159 Newmarket Road, Windsor In a significant consolidation of prime inner-northern land, a private investor has acquired two retail assets in Windsor for a combined total of $43.5 million. The Windsor Exchange at 143 Newmarket Road, a 2,915 m² convenience and large-format centre on an 8,010 m² site, was purchased for $28.5 million from the Griffith Group. Simultaneously, the buyer secured the adjacent Officeworks at 157-159 Newmarket Road for $15 million. These acquisitions reflect a strategic focus on defensive income and long-term land value in high-exposure metropolitan corridors (Herde, 2026). Pumicestone Road and Clinker Road, Elimbah Singaporean developer Ho Bee Land, through its subsidiary Elimbah Land, has acquired a 181.36ha underdeveloped site (englobo) north of Brisbane for $318.5 million. The site is expected to yield approximately 1,400 residential lots and 64 mixed-business and industrial lots. The transaction includes more than 25ha zoned for mixed industry and business. This major acquisition highlights the critical role of the northern growth corridor in meeting South East Queensland’s industrial and housing demand (Herde, 2026). The Queensland commercial market is demonstrating remarkable resilience, with major international and interstate players moving aggressively to secure "future-proof" landholdings. While residential affordability constraints are significant, they are fuelling a search for value that benefits the commercial sector. As the state moves closer to its 2032 commitments, the tightening of supply across all sectors is expected to provide a strong floor for valuations throughout 2026.Market Overview
Weekly Transaction Summary
Sector
Property Address
Price / Annual Rent
Yield / WALE
Size (m²/ha)
Development
Pumicestone & Clinker Rds, Elimbah
$318,500,000
N/A
181.36ha
Retail
143 Newmarket Rd, Windsor
$28,500,000
7.04-year WALE
2,915 m²
Retail/LFR
157-159 Newmarket Rd, Windsor
$15,000,000
4.85%
1,944 m²
Office
Level 1, 220 Melbourne St, South Brisbane
$3,500,000
9.4%
572 m²
Office (Lease)
155 Wharf St, Spring Hill
~$200,000 p.a.
5-year term
689 m²
Comment
Office – 155 Wharf Street, Spring Hill
Office – Level 1, 220 Melbourne Street
Retail & LFR – Windsor Exchange & Officeworks
Development – Elimbah Master-Planned Site
General News
Impact: This shift is moving commercial value away from traditional CBD locations toward transport-oriented development (TOD) precincts, encouraging industrial and retail decentralisation (Ray White Commercial, 2025).
Impact: This scarcity is likely to drive further yield compression and rental growth for existing well-located retail assets (API Magazine, 2025).
Impact: Commercial developers must ensure immediate compliance to avoid infringement notices and potential project delays (Ensure Legal, 2026).Final Take
References
For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane
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