McGees Wrap Up 13th February 2026

Market Overview

The Queensland commercial property sector maintains robust momentum, recently surpassing Victoria as the second largest state for commercial transaction value in Australia (Radar, 2026). While Property Council of Australia data for January 2026 indicates a rise in Brisbane CBD office vacancy to 11.8 per cent, this is largely attributed to a final wave of major supply additions like 360 Queen Street (Herde, 2026).

Investor sentiment remains high, particularly for land-rich assets and regional industrial hubs, as buyers price in the long-term benefits of the state's significant infrastructure pipeline and record population growth (Herde, 2026; Radar, 2026).

Weekly Transaction Summary

Property Address	Sector	Price	Yield / Rate
77-95 North Lakes Drive, North Lakes	Retail / LFR	$52,000,000	6.00%
54 Pioneer Road, Yandina	Industrial	$27,000,000	9.04%*
126 Margaret Street, Brisbane City	Office	$27,430,000	8.96%
499 Waterford Road, Ellen Grove	Childcare	$9,000,000	Market Yield
53 Montpelier Road, Bowen Hills	Industrial	$6,500,000	$5,877/sqm

*Yield derived from reported annualised returns and acquisition capitalisations (Herde, 2026).

This Week’s Highlights

Industrial – Record Sunshine Coast Sale

54 Pioneer Road, Yandina

Syndicator Rethink Capital has purchased a 2.3-hectare industrial asset for $27 million from WOTSO. The property, which houses News Corp Australia’s printing press, was sold with a 10-year lease to APN Print. This transaction represents the highest value industrial deal recorded on the Sunshine Coast, reflecting intense competition for high-yielding regional opportunities with national tenant covenants (Herde, 2026).

Retail & LFR – North Lakes Home+ Acquisition

77-95 North Lakes Drive, North Lakes

Centennial has acquired the Home+ North Lakes Large Format Retail centre from HomeCo Daily Needs REIT for $52 million. The sale price reflects a 6 per cent yield. The 11,834 square metre facility sits on a substantial 4-hectare lot with only 34 per cent site coverage. The surplus land offers significant future development upside in one of the nation’s fastest-growing urban corridors (Herde, 2026).

Office – CBD Tower Entry

126 Margaret Street, Brisbane City

Arcana Capital has finalised its first Brisbane CBD acquisition, paying $27.43 million for the 5,544 square metre tower at 126 Margaret Street. The deal reflects an 8.96 per cent yield. The asset is positioned to benefit from the ongoing $19 billion Cross River Rail project and the emerging luxury residential precinct surrounding Queen's Wharf (Herde, 2026).

Medical – Waterford Road Childcare Transaction

499 Waterford Road, Ellen Grove

A newly built 120-place childcare centre, Bask Early Learning, was snapped up by a private investor for $9 million. The 5,483 square metre freehold lot was purchased sight unseen, illustrating the aggressive appetite for defensive "essential service" assets in high-growth residential demographics (Herde, 2026).

Industrial – Bowen Hills Refurbishment

53 Montpelier Road, Bowen Hills

A private investor has secured a prime inner-city warehouse for $6.5 million. The 1,525 square metre site attracted 167 enquiries, highlighting the critical scarcity of stock in the inner-north. The purchaser intends to refurbish the dual-unit warehouse to capitalize on the tightening leasing market (Herde, 2026).

General News

QBCC Regulatory Changes: New amendments to the Queensland Building and Construction Commission Regulation commenced on 1 February 2026. Licensees are now required to update contact details within 14 days or face mandatory infringement notices. Impact: This shift increases administrative accountability for builders and developers, aiming to streamline communication during the state's infrastructure boom (Ensure Legal, 2026).
Residential Activation Fund: The State Government has released guidelines for Round 2 of the $500 million Residential Activation Fund. Impact: By unlocking trunk infrastructure for major housing developments, this policy will stimulate secondary demand for local commercial, retail, and medical services in historically underserved growth nodes (Ministerial Media Statements, 2026).
CBD Office Supply Outlook: While January saw vacancy rise to 11.8 per cent, the Property Council of Australia predicts a three-year "drought" in new supply until 2028. Impact: This forecast is encouraging landlords to hold assets in anticipation of significant rental growth as existing backfill space is absorbed by the professional services sector (Herde, 2026; PCA, 2026).
Land Lease Sector Divestment: Mitsubishi Estate Asia is divesting its 49.9 per cent interest in a 2,025-home land lease portfolio across South East Queensland. Impact: This move highlights the institutionalisation of "age-qualified" housing as a preferred commercial asset class, attracting significant offshore and private equity capital (Herde, 2026).

Final Take

The Queensland property market is currently shifting as buyers and tenants change what they value most. Instead of just looking for any available space, they are now focusing on two specific goals: securing the best possible buildings and acquiring properties with significant land value.

In the Brisbane Central Business District, the office market is seeing a temporary increase in vacant spaces because several new buildings have finished construction at the same time. However, this has not slowed down the rest of the market. On the Sunshine Coast, industrial properties are achieving record-breaking prices, and in the inner city, there is intense competition to buy and renovate older buildings.

This shows that investors are now prioritising properties that offer room for future growth or redevelopment. With the 2032 Olympic Games driving massive government spending on infrastructure, properties in prime locations—especially those with extra, unused land—are expected to keep their high values, even if the wider economy faces challenges.

Premium over Average: Tenants are moving out of older, basic offices and into modern, high-end spaces to attract staff and improve their business image.
The Value of the Earth: Investors are less interested in "paper" investments and are putting their money into physical land that can be built upon later.
The Olympic Factor: Proximity to new transport and stadium upgrades is making inner-city land more valuable than the actual buildings currently sitting on it.

References

Ensure Legal. (2026, February 1). QBCC Subordinate Legislation Commenced 1 Feb 2026: What Changed And Why It Matters. https://ensurelegal.com.au/
Herde, C. (2026, February 6). CBD in transformation: Arcana Capital buys its first city office tower in emerging precinct. The Courier-Mail, 59.
Herde, C. (2026, February 6). Same old storey for vacancies. The Courier-Mail, 59.
Herde, C. (2026, February 6). Fund pushes into retail. The Courier-Mail, 60.
Herde, C. (2026, February 6). Warehouse set for big refurbishment. The Courier-Mail, 61.
Herde, C. (2026, February 6). Childcare centres demand ramps up. The Courier-Mail, 64.
Herde, C. (2026, February 6). Print site changes hands. The Courier-Mail, 65.
Ministerial Media Statements. (2026, February 10). Guidelines for $500 million Residential Activation Fund Round 2 released. Queensland Government. https://statements.qld.gov.au/
Property Council of Australia (PCA). (2026, February 5). Office Market Report January 2026.
Radar. (2026, January 30). Queensland Commercial Property Market Update 2025. https://raywhitecommercialncg.com/

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

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