Upper Mount Gravatt

The commercial property market in Upper Mount Gravatt represents one of the most compelling investment narratives in the South East Queensland region as of January 1, 2026. This analysis provides an exhaustive evaluation of the suburb’s economic, demographic, and structural transformation, serving as a definitive guide for landlords aiming to maximise asset performance through strategic leasing, disposition, and professional portfolio management. Located approximately 11.2 kilometres from the Brisbane Central Business District, Upper Mount Gravatt has transcended its traditional role as a suburban retail enclave to become a critical regional employment node and a key beneficiary of Brisbane’s infrastructure-led economic expansion.¹ The suburb’s land area of 4.2 square kilometres is characterised by an intensive concentration of retail, healthcare, and administrative activities, supported by a workforce that is highly specialised compared to the broader Brisbane City Local Government Area.¹

Demographic Foundations and Economic Specialisation

The viability of commercial property is inextricably linked to the demographic and workforce profiles of its immediate catchment. Upper Mount Gravatt exhibits a population trajectory that places it in the top quartile of growth performance nationally.¹ As of late 2025, the estimated resident population has climbed to approximately 12,090, marking a 10.03% increase since the 2021 Census.¹ This growth is uniquely driven by overseas migration, which accounts for 100% of recent population gains, facilitating a culturally diverse and economically active consumer base.¹

Workforce Characteristics and Place of Work Data

The workforce profile of Upper Mount Gravatt is a testament to its role as a regional economic engine. Place of work data indicates that the suburb supports 10,878 employed persons.² A critical insight for commercial landlords is the "commuter imbalance": only 7.3% of workers in the suburb actually reside there, while 92.7% commute from surrounding SA2 and SA3 regions such as Mount Gravatt, Sunnybank, and Rocklea-Acacia Ridge.² This high volume of inward commuting provides a constant daytime population that fuels local retail and food service industries.

The specialisation ratio for the Retail Trade (2.70) and Public Administration (1.88) sectors highlights the suburb’s strength as an administrative and retail destination.² For property owners, this specialisation suggests a market with a "sticky" tenant base in essential and government-backed services, which typically provides higher income security during economic downturns.

Personal Income and Occupational Shifts

The economic health of Upper Mount Gravatt is reflected in its personal income data. The median personal income is recorded at $53,414, which, while lower than the Brisbane average of $69,390, is trending upward according to 2025 estimates that place median taxpayer income at $60,593.¹ The occupation profile is predominantly "white collar," with Professionals (21.1%) and Sales Workers (17.4%) representing the largest cohorts.² The specialisation in Sales Workers (ratio of 2.37) is particularly significant for landlords of retail and showroom assets, as it indicates a local labour pool that supports high-turnover retail environments.²

The Strategic Evolution of Commercial Infrastructure

Upper Mount Gravatt is currently experiencing a transformation catalysed by over $913 million in local infrastructure investment.¹ The most significant of these is the Brisbane Metro project, which is reshaping the Logan Road corridor into a high-frequency transit-oriented development spine.³

The "Metro Premium" and Transport-Oriented Development

The Brisbane Metro network, particularly the M1 line from Eight Mile Plains to Roma Street, creates a premium for commercial properties located within 800 metres of key stations like Garden City and Griffith University.³ Historical data from similar major infrastructure announcements suggests that underground and high-frequency stations can spark 15-20% value increases in surrounding precincts.³ For commercial office assets, the Metro provides a vital employee retention tool, allowing businesses to attract talent from across the Greater Brisbane area who can now access the suburb via a 21-kilometre high-connectivity network.³

The impact of this connectivity is already visible in rental growth. Strategic corridors along the Metro route have experienced up to 30% rental growth as businesses seek locations that mitigate the "commute friction" associated with hybrid work models.³ Landlords in Upper Mount Gravatt are uniquely positioned to capture this demand as tenants migrate from outer metro areas into well-connected suburban hubs that offer CBD-level amenity without the associated congestion.⁵

Griffith University Consolidation and Campus Redevelopment

A profound structural change is the consolidation of Griffith University’s Mount Gravatt campus into its Nathan and CBD campuses, a process expected to conclude by 2026.⁷ This decision marks the end of an era for the local education sector but creates an unparalleled opportunity for the redevelopment of a major landholding. The Queensland Government is currently reviewing options for the site, which are likely to include high-density residential components, expanded health facilities, and knowledge-based commercial precincts.⁹

The relocation of thousands of students and staff will inevitably shift local demand patterns. However, the university's $250 million hospital redevelopment and the construction of the new flagship N82 building at Nathan ensure that the broader region remains a hub for education and medical research.⁷ For commercial landlords, the redevelopment of the Mount Gravatt campus represents a long-term "halo effect" that will likely increase the property values of nearby assets as the precinct is modernised and integrated into the Brisbane Metro's Griffith University station node.¹

Analysing the Commercial Office Market: Flight to Quality

The Upper Mount Gravatt office sector is characterised by a mix of large institutional holdings and a highly active strata-titled market. The broader Brisbane metropolitan office market has demonstrated significant resilience, with CBD vacancy dropping to 10.4% in late 2025, outperforming Melbourne and Sydney.¹¹

Rental Rates and Vacancy Trends

Office rental rates in Upper Mount Gravatt currently average approximately $364 to $381 per square metre.¹³ However, prime-grade assets that offer high amenity and modern environmental credentials command a significant premium. The "flight to quality" is the dominant theme of the 2025-2026 cycle; tenants are increasingly favouring A-grade space with modern fit-outs, leading to a bifurcation in the market where secondary-grade stock faces persistent vacancy challenges.¹¹

For landlords of older buildings on Logan Road or Sanders Street, the message is clear: refurbishment and the provision of "turnkey" fit-outs are essential to capture the resilient demand from Small and Medium Enterprises (SMEs).⁵ The sub-1,000 square metre deal range accounted for 63% of deals in recent quarters, highlighting the dominance of smaller, agile businesses in the suburban office landscape.⁶

Notable Sales Evidence and Asset Benchmarking

Data from Core Logic RP Data highlights the depth and diversity of the local office market. Institutional-scale assets like 28 Macgregor Street and 17 Wadley Street represent the upper echelon of the market, with sales prices of $64 million and $40.4 million, respectively.²

The sale of 2092 Logan Road (Logan Court) for $7.5 million in 2019 achieved a record-sharp yield of 2.73%.¹⁷ This sale provides a vital benchmark for landlords: in a climate of tight supply, assets with short-term WALE and value-add refurbishment potential are attracting aggressive bidding from investors looking to reposition properties to meet modern A-grade standards.¹⁷

The Retail Sector: A Paradigm Shift in Consumer Engagement

Retail is the cornerstone of Upper Mount Gravatt’s economic identity, boasting a specialisation ratio of 2.70.² The sector is undergoing a profound shift from traditional "commodity retail" to experiential and lifestyle destinations, centred around the Westfield Mount Gravatt node.

Westfield’s Repositioning and Performance

Under the stewardship of Scentre Group, Westfield Mount Gravatt has successfully transitioned to a multi-use leisure hub. The recent $50 million repurposing of former department store space into a vibrant mix of specialty retail (Uniqlo, Harris Scarfe) and high-order entertainment (Area 51, Holey Moley, Hijinx Hotel) has resulted in a significant uplift in customer visitation.¹⁸ By late 2025, Scentre Group reported portfolio occupancy at a staggering 99.8%, with specialty sales growing by 4.4%.¹⁸

For local landlords operating on the periphery of Westfield, this success creates a significant positive externality. The centre’s transition to an entertainment and dining destination increases the evening and weekend foot traffic along Logan Road, benefiting street-front bars, restaurants, and convenience retail.

Logan Road and the Mt Gravatt Centre Suburban Renewal Precinct Plan

The Brisbane City Council’s draft renewal plan, which concluded public consultation on 14 December 2025, represents the most ambitious zoning change in the suburb’s history.²¹ The plan envisions the transformation of the Logan Road corridor into a "vibrant urban village".²²

Key features of the plan that directly impact commercial property owners include:

• Density Increases: Provisions for apartment towers reaching up to 16 storeys at Mount Gravatt Plaza and 12 storeys along the Logan Road corridor.²⁴
• Mixed-Use Mandates: Requirement for active commercial and retail frontages on the lower two levels of new developments.²²
• Shaded Boulevards: An emphasis on subtropical design, including new arcades, shaded pathways, and green links between Logan Road and surrounding recreational zones like Glindemann Park.²²

This planning shift provides landlords with a clear roadmap for value creation. Properties that are currently underutilised as single-storey retail strips or car yards are now primary candidates for mixed-use redevelopment. The council’s focus on "landmark sites" and "potential development areas" ensures that high-quality architectural outcomes will be rewarded with increased plot ratios and heights.²³

The Medical and Healthcare Hub: A Recession-Proof Asset Class

With the Healthcare and Social Assistance sector employing 16.0% of the local workforce, Upper Mount Gravatt has established itself as the premier medical services hub of the Southside.² This sector is highly attractive to commercial landlords due to its low volatility, long-term lease structures, and the intensive capital investment tenants make in their fit-outs.²⁵

Clinical Expansion and Specialised Services

The repurposing of the former Mitre 10 site on Logan Road into a multifaceted medical centre is a prime example of the suburb’s adaptive reuse trend.²⁴ New investments, such as the Inner You Development clinic opening on February 1, 2026, demonstrate the demand for purpose-built allied health space.²⁸ This clinic, located opposite Westfield, features four consulting rooms, workshop spaces, and dedicated conference facilities, catering to the growing mental health and NDIS sectors.²⁸

The Princess Alexandra Hospital (PAH) Connection

The $350 million vertical expansion of the Princess Alexandra Hospital, slated for completion in the second half of 2026, will deliver 249 additional beds and expanded specialist treatment spaces.²⁹ This massive increase in tertiary medical capacity will drive secondary demand for medical consulting suites in Upper Mount Gravatt, as specialists and outpatient services seek proximate, high-amenity locations with better parking and access than the hospital precinct itself.²⁹

For landlords, the medical sector offers a yield profile that typically averages 5.25% for prime assets and 7% for secondary stock.²⁶ The trend toward "connected care communities" and the integration of smart assistive technologies will require office spaces that can support high-speed fibre and sophisticated electrical loads, favouring owners who modernise their buildings' core infrastructure.³⁰

Industrial Resilience and "Last-Mile" Logistics

While Upper Mount Gravatt is primarily a retail and office hub, its light industrial zone along Newnham Road remains a vital component of its economic ecosystem. The industrial sector has been the standout performer of the 2023-2025 period, with total returns reaching 6.4% in the September 2025 quarter.¹¹

Newnham Road Precinct Analysis

The Newnham Road corridor serves as a critical "last-mile" logistics link for the dense residential catchments of the Southside. Properties in this zone are increasingly transitioning from pure manufacturing to trade showrooms and retail warehouses.²

The stability of the industrial sector is underpinned by low vacancy rates (currently 3.7% in Greater Brisbane) and a lack of new supply due to elevated construction costs.¹¹ For landlords on Newnham Road, this supply-demand imbalance provides significant leverage during rent reviews and lease negotiations. The trend toward increased automation and e-commerce expansion will continue to drive the demand for well-located industrial sites that can facilitate rapid delivery times.¹¹

The Case for Professional Property Management: Navigating Legislative Complexity

In the dynamic 2026 property market, the role of the property manager has evolved from simple rent collection to complex risk management and asset optimisation. Significant legislative changes in Queensland have made the regulatory landscape more challenging for self-managing landlords.

The Property Law Act 2023: A New Regulatory Era

Commencing on 1 August 2025, the Property Law Act 2023 (PLA23) replaced the 1974 Act, introducing stricter notice requirements and new protections for tenants that override existing contract clauses.³²

Key impacts for commercial landlords include:

• Landlord Consent Process: The Act introduces a formal procedure for obtaining consent to lease assignments, subleases, or changes in use.³³ Landlords must not "unreasonably withhold consent," and failure to respond within one month can result in court intervention.³²
• Automatic Release of Liability: Under Section 144, original tenants and their guarantors are now automatically released from liability once a lease is reassigned and then reassigned again (Assignment B).³² This aligns Queensland with other jurisdictions and ends the era of "liability without end" for outgoing tenants.³²
• Prescribed Statutory Forms: All breach and termination notices must now use Form 7 (Notice to Remedy Breach) and Form 9 (Notice to Terminate Lease).³² We have already observed cases where termination letters on landlord letterheads were deemed legally defective because they did not adhere to these prescribed forms.³²

Outgoings Recovery and Reconciliation Best Practices

Effective management of outgoings is critical for protecting the net income of a commercial asset. Outgoings typically include statutory charges (council rates, water), operating expenses (cleaning, insurance, security), and management fees.³⁵

For retail landlords, the Retail Shop Leases Act (RSL Act) imposes significant restrictions. Landlords cannot recover land tax or certain management fees from retail tenants.³⁵ Meticulous financial reporting is required, including:

• Annual Estimates: Providing tenants with a detailed budget of apportionable outgoings at the start of each financial year.³⁷
• Audited Statements: Issuing an audited annual outgoings statement by 30 September each year.³⁷
• Transparency: Failure to properly disclose or manage outgoings can lead to civil penalties of up to $11,000 and the potential for lease provisions to become unenforceable.³⁹

Professional management ensures that "gross-up" formulas are correctly applied in multi-tenanted buildings with vacancies, ensuring the landlord recovers the maximum allowable amount of operating costs without violating statutory limits.³⁶

Risk Mitigation and Specialised Compliance

Modern commercial property management includes specialised monitoring of tenant activities. The Tobacco and Other Smoking Products (Dismantling Illegal Trade) and Other Legislation Amendment Bill 2025 now grants landlords the power to terminate leases if a closure order is issued due to illegal trade.⁴⁰ Conversely, landlords can face criminal and civil penalties if they are "recklessly indifferent" to illegal activity on their premises.⁴⁰ Professional managers conduct regular inspections and maintain detailed records, providing the "reasonable excuse" documentation required to protect the owner from liability.⁴⁰

Strategic Recommendations for Landlords: Maximising Value in 2026

The convergence of the Brisbane Metro connectivity, the Mt Gravatt Renewal Plan, and the burgeoning medical precinct creates a unique window of opportunity for asset owners in Upper Mount Gravatt.

Optimization of the Sales Process

For owners considering a disposition, the current market climate favours well-positioned assets with long WALE and modern ESG (Environmental, Social, and Governance) credentials. Brisbane yields of 5.0-6.0% remain significantly more attractive to interstate and institutional capital than the 4.5% averages seen in Sydney.³ To maximise sale price, landlords should:

• Secure Tenure: Prioritise lease renewals 18 months in advance to present a stabilised income stream to potential buyers.⁴²
• Audit Planning Potential: Obtain independent planning advice to articulate the "highest and best use" potential under the new 12-16 storey density allowances.²⁴
• Modernise Infrastructure: Ensure building management systems and electrical infrastructure are compatible with modern medical or high-tech office use.³⁰

Leasing Strategies for Tenant Retention

In a market defined by the "flight to quality," leasing success is dependent on providing a superior tenant experience.

• Incentive Management: Expect to offer incentives of 35-40% for secondary office stock, while prime retail incentives are tightening as vacancy drops below 1%.¹⁶
• Turnkey Solutions: SME tenants increasingly prefer "ready-to-go" spaces that mitigate their capital expenditure on fit-outs.⁵
• Service Excellence: Reliable communication and a proactive maintenance schedule for HVAC, lifts, and fire safety systems are the top factors influencing tenant satisfaction and lease renewal.⁴²

Conclusion: The Path Forward for Upper Mount Gravatt Asset Owners

The property market of Upper Mount Gravatt in 2026 is no longer a simple suburban retail centre; it is a sophisticated, high-growth regional hub. The massive infrastructure injection from the Brisbane Metro and the structural rezoning provided by the Mt Gravatt Centre Suburban Renewal Precinct Plan have created a "value-up" environment that rewards those with foresight and professional expertise.

For landlords, the risks of self-management and passive ownership have never been higher. The complexity of the Property Law Act 2023, the restrictions of the Retail Shop Leases Act, and the intense competition for quality tenants require a management partner who can navigate legal nuances while driving capital appreciation. By leveraging detailed place-of-work data, benchmarking against record-sharp sales evidence, and aligning assets with the suburb’s medical and experiential retail specialisation, property owners can ensure their portfolios are resilient, compliant, and positioned for exceptional growth in the decade leading up to the 2032 Olympics. Upper Mount Gravatt is a suburb transformed, and the opportunity to capitalise on this evolution is now.