The Queensland commercial market continues to exhibit resilience, driven by strategic owner-occupier acquisitions and high-conviction plays in the retail sector. Sentiment remains buoyed by the “Olympic-proofing” of the Brisbane CBD and a massive regulatory shift in the City of Moreton Bay. As the state moves toward a “Polycentric City” model, recent demographic data confirms a structural shift toward healthcare and essential-service-anchored assets as the population matures (Kannan, 2026; City of Moreton Bay, 2026a).

Retail – Mooloolaba Central Station Corner

3 Brisbane Road, Mooloolaba

RM Capital has acquired a prominent ground-floor retail holding at the base of the Syrenuse apartments for $7.6 million. The 664 sqm site was held by a private investor for 38 years. The buyer plans a $2 million refurbishment to attract national tenancies (Herde, 2026).

Development – Joyner Townhouse Site

34-36 Oxford Street, Joyner

Ausbuild has secured a 2ha landholding north of Brisbane for $10.1 million. The site carries approval for 74 four-bedroom townhouses and is positioned within an Emerging Community Zone (ECZ) – Transition Precinct. Construction is slated to commence in April 2026 (Herde, 2026; City of Moreton Bay, 2026c).

Office – Milton Freestanding Headquarters

1 Mayneview Street, Milton

Port Binnli Group has purchased the former RBC Building for $5.7 million. The sale achieved a record building rate of $6,455 per square metre for Milton assets with Low Impact Industry zoning that permits office use (Herde, 2026).

Development – Budds Beach Consolidation

8-10 Acacia Avenue and 25-27 Oak Avenue, Budds Beach

Homecorp has acquired a 2,130 sqm site for $12.3 million. A development application is expected in the coming weeks, targeting the housing undersupply on the Gold Coast (Herde, 2026).

Retail – Regional Queensland Portfolio

Whitsunday Plaza and Gympie Central

Charter Hall has acquired a portfolio including Whitsunday Plaza and Gympie Central for $250.3 million. The transaction highlights institutional appetite for regional assets anchored by national retailers (Herde, 2026).

Moreton Bay Development & Zoning Summary

The $10.1 million Joyner acquisition serves as a case study for why timing is everything in the City of Moreton Bay. As of early 2026, the region is moving away from the “patchwork” of legacy codes and into a more standardised, developer-friendly era.

1. The Unified Planning Scheme (2025–2026 Transition)

The City of Moreton Bay has formally resolved to replace the 2016 Planning Scheme. This move targets the “Polycentric City” vision, where infrastructure is clustered around multiple urban hubs (like Joyner/Petrie and Caboolture West) rather than a single CBD.

• What’s Changing: The council is streamlining legacy zones into standardised categories to align with Shaping SEQ 2023. For developers, this means more predictable height, setback, and site coverage rules across the region.
• The “Joyner” Context: The $120 million upgrade to Youngs Crossing, currently underway, is the primary catalyst for the $10.1m Oxford Street sale. The new scheme prioritises “Next Generation” residential density near such major infrastructure corridors.

2. The “Narangba East” Factor and Temporary Local Planning Instruments (TLPIs)

While Joyner is open for business, the neighbouring Narangba East area is under a Temporary Local Planning Instrument (TLPI 01/2025), effective until June 18, 2026.

• The Pause: The TLPI prevents “premature” residential subdivisions in a 445-hectare area to protect its potential as a major Future Enterprise and Employment Area.
• The Commercial Play: The council expects this precinct to support up to 10,500 future jobs. Investors are currently “land banking” in this zone, waiting for the TLPI to expire and the new planning scheme to formalise the transition from rural-residential to high-impact employment and industrial uses.

3. Decoding the “Emerging Community Zone”

If you are assessing sites in Joyner, Narangba, or Burpengary East, you are likely looking at the Emerging Community Zone (ECZ). This zone is split into two critical precincts:

The Impact on Commercial Property

• Infrastructure Charges: The council is currently offering remissions (up to 100% in some cases) for affordable social housing components within these growth zones through to June 2027.
• Bushfire Resilience: New city-wide mapping (Major Amendment No. 4) now mandates higher safety standards for any commercial or healthcare builds in ECZ areas, which must be factored into feasibility studies.
• Signage & Visibility: Similar to the Brisbane CBD “Olympic-proofing,” the Moreton Bay Indoor Sports Centre in Petrie (an Olympic venue) is driving speculative interest in surrounding commercial land for signage and short-term accommodation tenancies.

General News

• Olympic Branding Race: Building owners are locking in signage rights as part of leasing negotiations to capitalise on the 2032 global broadcast. Industry Impact: This creates a “once-in-a-generation” revenue stream for CBD towers (Herde, 2026).
• Demographic Reallocation: Queensland’s 70-plus cohort is projected to grow by 37 per cent by 2036. Industry Impact: This shift mandates a reallocation of capital toward suburban medical precincts and local service hubs (Kannan, 2026).
  Older households allocate a higher percentage of their income to health and home maintenance, making neighbourhood centres anchored by a pharmacy and medical clinic more durable than those dependent on youth-driven discretionary retail.
  

  Factor	Impact on Commercial Property
  Increased Life Expectancy	Drives long-term demand for aged care and “ageing in place” residential modifications.
  Interstate Migration	Increases the “wealth transfer” into Queensland, supporting high-end retirement living.
  Service Dependency	Mandates more flexible, decentralised office formats for professional and financial services.

Final Take

This week’s activity underscores a sophisticated market where timing, particularly regarding the Moreton Bay zoning transition and Brisbane’s Olympic preparations, is everything. From record office rates in Milton to strategic land consolidation in Joyner, the intersection of infrastructure and planning maturity is defining the next decade of Queensland property investment.

Unlock the True Value of Your Assets

With the Queensland commercial landscape shifting rapidly, from the Moreton Bay Unified Planning Scheme to the 2032 Olympic infrastructure surge, static valuations are a risk of the past. At McGees Property, our Valuation & Advisory team provides the precision required to navigate this maturing market.

Why partner with McGees Valuations?

• Sector Specialists: Whether it is specialised Medical & Allied Health precincts, Emerging Community development sites, or premium CBD Office towers, we provide deep-dive analytics beyond the headline figures.
• Regulatory Intelligence: We don’t just look at comparable sales; we factor in the “Moreton Bay shift” and TLPI impacts, and evolving zoning mandates to ensure your “Transition” or “Interim” assets are priced for their highest and best use.
• Data-Driven Foresight: Utilising the latest demographic projections and infrastructure timelines, we help you identify value-add opportunities before they are priced into the market.

Our Services Include:

• Mortgage Security & Institutional Valuations
• Development Feasibility & Master Planning Advisory
• Asset Portfolio Reviews & Financial Reporting
• Compulsory Acquisition & Statutory Assessment Appeals

Don’t leave your equity to chance in a transitioning market. Contact our Valuation Department today for a confidential discussion on how we can provide the clarity your portfolio deserves.

References

• City of Moreton Bay. (2026a, January 29). City of Moreton Bay begins new planning scheme chapter. https://www.moretonbay.qld.gov.au/News/Media/City-of-Moreton-Bay-begins-new-planning-scheme-chapter
• City of Moreton Bay. (2026b, February). Youngs Crossing upgrade, Joyner. https://www.moretonbay.qld.gov.au/Services/Projects/Roads/Youngs-Crossing
• City of Moreton Bay. (2026c). MBRC Planning Scheme – Emerging community zone. https://www.moretonbay.qld.gov.au/Services/Building-Development/Planning-Schemes/MBRC/Info-Sheets/Emerging-Community-Zone
• Herde, C. (2026, February 27). Project a shore thing. The Courier-Mail.
• Herde, C. (2026, February 27). Race for space secured. The Courier-Mail.
• Kannan, H. H. P. (2026, March 5). New age to drive change in commercial property. The Australian.

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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The Queensland commercial property sector is navigating a significant structural recalibration as fiscal policy speculation and shifting workplace habits dominate the early 2026 narrative. Following the Reserve Bank of Australia’s decision on 3 February to raise the cash rate to 3.85 per cent – the first hike in over two years – investors are recalibrating for a “higher-for-longer” environment. Despite this, South East Queensland remains a national outlier for growth, with demographers forecasting a permanent structural baseline of 15 per cent for work-from-home participation, driving a “flight to quality” as tenants prioritise high-specification, collaborative workspaces (Salt, 2026). Investor sentiment is currently bifurcated: institutional capital is aggressively targeting high-spec industrial and medical assets, while private investors are scouring growth corridors like Springfield for passive retail-office opportunities that offer inflation-hedged income streams (Herde, 2026).

Transaction Summary

Industrial – Warana Manufacturing Facility

31 Production Avenue, Warana

A local pharmaceutical manufacturer seeking to expand production has snapped up a 1,043 sqm standalone warehouse for $4 million. The transaction reflects a high building rate of approximately $3,835/sqm, driven by a specialized $2.2 million pharmaceutical manufacturing fit-out already in place. The deal highlights a broader trend where owner-occupiers are outbidding traditional investors for high-specification industrial assets to avoid the high costs and lengthy lead times of new construction (Herde, 2026).

Healthcare – Moorooka Childcare Acquisition

135 Keats Street, Moorooka

The Happy Tots Early Learning Centre has been sold to a Brisbane-based operator for $5.5 million. The transaction recorded a rate of $73,333 per licensed place, the seventh highest in Queensland for the recent cycle. The near-new facility, located directly opposite Moorooka State School, benefited from strong competitive tension, illustrating the continued depth of demand for defensive, essential-service assets in middle-ring suburbs (Herde, 2026).

Office/Retail – Springfield Growth Asset

24 Commercial Drive, Springfield

In a pre-auction deal, an interstate private investor has secured a 352 sqm multi-tenanted building for $2.285 million. Reflecting a yield of 5.73 per cent, the sale demonstrates the allure of the Springfield corridor for passive investors. The 1,304 sqm site is fully leased to tenants including NGU Real Estate and Springfield Pool Shop. The property’s value has increased significantly since 2021, cementing Springfield’s reputation as a top-tier growth location (Herde, 2026).

General News & Industry Impact

1. Taxation Reform Speculation

Speculation is mounting ahead of the May Budget regarding a potential reduction of the 50% Capital Gains Tax (CGT) discount to 25% for individuals and trusts. Impact: A reduction would significantly lower net exit returns for private syndicates and unit trusts. This may trigger a “rush to the exit” for assets held for over 12 months before new laws take effect.

If changes are not backdated (grandfathered), we anticipate a “rush to the exit” as investors settle deals before May to lock in the 50% rate. Conversely, once a new law is passed, owners may refuse to sell, creating a secondary “supply crunch” as they hold assets indefinitely to avoid the higher tax hit.

Investors may move away from “land banking” or speculative development (where growth is the goal) and toward high-yield, long-WALE (Weighted Average Lease Expiry) assets like medical clinics or industrial warehouses, where the primary return is monthly rent rather than a final capital gain.

2. Infrastructure Funding: Residential Activation Fund (RAF)

The Crisafulli Government’s $2 billion fund (specifically Round 2’s $500 million) is designed to solve the “Trunk Infrastructure Gap.” This refers to the massive upfront cost of water, sewage, and major roads that often prevents a development from starting.

• Mixed-Use Stimulus: While the focus is housing (98,000 homes), these new residential precincts require “daily needs” retail (supermarkets, chemists) and local services (medical suites). Developers who can secure RAF funding for the residential component can effectively mitigate the risks associated with the commercial portions of a mixed-use master plan.
• Lowering Barriers for Mid-Tier Developers: By absorbing the infrastructure costs, the government is making “fringe” hubs (like Logan or the Sunshine Coast Hinterland) viable for smaller, local developers who previously couldn’t afford the multi-million dollar “buy-in” for utilities.

3. Workplace Evolution: The 15% Baseline

Demographer Bernard Salt argues that the “laptop class” has permanently decoupled workplace value from the CBD cubicle.

• The Rise of the “Collaborative Hub”: Offices are no longer for quiet, heads-down work; that happens at home. Commercial value is shifting toward buildings that offer high-end amenities—”third spaces” like cafes, rooftop gardens, and modular meeting rooms.
• The Death of the “Desk Farm”: Traditional B-grade office assets with dense cubicle layouts are facing obsolescence. Landlords of these secondary buildings must either reinvest in “amenity-rich” upgrades or face a permanent vacancy trap.
• Transport-Oriented Development (TOD): With 15% of people staying home and others working hybrid, proximity to major transport interchanges (like Cross River Rail stations) is becoming more valuable than being in the “Golden Triangle” of the CBD.

4. Retirement Liquidity Stress

Advisers are increasingly moving clients away from residential investment properties because they are “illiquid” and “management-intensive.”

• The “Net Yield” Reality Check: As noted by Dean (2026), a residential property might have a 4% gross yield, but after rates, maintenance, and the Queensland Land Tax, the net yield often drops below 3%.
• The Commercial Rotation: Retirees are pivoting to commercial syndicates for three reasons:
  1. Net Leases: In commercial, the tenant typically pays the outgoings (rates, insurance, maintenance), leaving the investor with a “clean” yield.
  2. Higher Returns: Prime industrial or neighborhood retail in 2026 is averaging 5.5% to 6.5% net, nearly double the typical residential net return.
  3. Liquidity: While selling a $1M house takes months, selling $100k of units in a managed commercial fund is often significantly faster.

Final Take

The Queensland commercial market is currently defined by a “precision” of asset selection. While macroeconomic shifts like the RBA’s rate hike and potential CGT reform have introduced caution, the fundamental scarcity of high-quality, serviced stock is maintaining competitive tension. For the remainder of 2026, we anticipate that high-yielding commercial assets in the state’s key infrastructure growth corridors will continue to outperform as investors seek stability over speculative growth.

References

• Crisafulli Government. (2026, February 22). $500 million boost to unlock housing foundations. Queensland Media Statements.
• Cush, H. (2026, February 14). Why removing CGT could spell disaster for Aussie renters. The Courier-Mail.
• Dean, L. (2026, February 24). Don’t make this major property mistake when you retire. Australian Financial Review.
• Herde, C. (2026, February 20). Interstate investor values Springfield; Childcare a growth asset; Fund secures Coast icon. The Courier-Mail.
• Radar, V. (2026). McGees Wrap Up 6th February 2026 – McGees Property Brisbane.
• Salt, B. (2026, February 25). Working from home and faith: Key data trends redefining Australia. The Australian.

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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The Queensland commercial sector is currently the nation’s standout performer, with transaction volumes in 2025 surging by 170 per cent to cement Brisbane’s position as a core national investment hub (Colliers, 2026). While the Reserve Bank of Australia’s decision to hold the cash rate at 3.85 per cent has maintained a “wait-and-see” approach for some, the market remains underpinned by a critical supply-demand imbalance. Prime retail yields are holding firm at 4.85 per cent, while the industrial sector continues to lead capital growth, particularly in the South East where vacancy rates remain historically low (Radar, 2026; JLL, 2026).

Retail – Uptown Mall $350m Revamp

91 Queen Street, Brisbane City

Vicinity Centres is set to take full control of Brisbane’s Uptown Mall (formerly the Myer Centre) by acquiring the remaining 75 per cent stake from IFM Investors for $212 million. The acquisition precedes a planned $350 million redevelopment aimed at transforming the 63,965 sqm asset into a premium retail, dining, and entertainment precinct. The project seeks to address the lack of large-scale, full-price luxury retail in the CBD and is scheduled for completion in time for the 2032 Olympic Games (The Australian, 2026).

Office – Sentinel Wood Street Sale

110 Wood Street, Mackay

Sentinel Property Group has divested a government-tenanted office building in Mackay for $8.085 million, achieving a 150 per cent profit over a two-year holding period. The 1,330 sqm asset, which holds a 6-star NABERS rating, was sold to a private investor following a value-add refurbishment. The deal underscores the strength of regional office markets where government covenants provide an internal rate of return exceeding 37 per cent (Herde, 2026).

Industrial – Acacia Ridge Refurbishment Uplift

189 Bradman Street, Acacia Ridge

A strategic refurbishment of a 4,000 sqm corner site has resulted in a 43 per cent increase in net income for the landlord. Whitford Hire has secured a five-year lease on the property, which features an 880 sqm building, at approximately $200,000 gross per annum. The rapid six-week turnaround from vacancy to tenancy highlights the intense demand for low-site-coverage industrial assets in Brisbane’s southern corridor (The Courier-Mail, 2026).

Development – Rochedale and Woolloongabba

465 Rochedale Road, Rochedale

CFMG Capital has expanded its South East Queensland pipeline with a $30 million acquisition of a 4ha site in Rochedale, earmarked for a 51-lot residential community and a 4,500 sqm neighbourhood commercial centre (The Courier-Mail, 2026).

891-897 Stanley Street East, East Brisbane

Nearby, DAKL Group has secured a $9.35 million corner site in the Woolloongabba PDA. Combined with their adjoining property, the 2,617 sqm footprint allows for a future 15-storey residential development near the Cross River Rail hub (Herde, 2026).

General News

• Industrial Land Shortage: Brisbane’s industrial vacancy rate has tightened to 3.4 per cent, with the Acacia Ridge/Logan corridor recording rates as low as 2 per cent for well-located assets. Impact: This structural undersupply is driving landlords toward value-add refurbishments rather than new builds, as rising construction costs and a lack of serviced land limit new supply until 2027 (Cushman & Wakefield, 2026; Ferns Finance, 2026).
• Night-Life Economy Reform: Night-Life Economy Commissioner John Collins has called for an end to “outdated” liquor laws and advertising restrictions to boost Brisbane’s international competitiveness. Impact: Proposed reforms to trading hours and precinct lighting could significantly enhance the valuation of hospitality-linked commercial assets in the CBD and inner-city fringes (Riley, 2026).
• Daylight Saving Proposal: Renewed discussion regarding a South East Queensland daylight saving time zone aims to align the state with southern markets. Impact: A shift could provide a significant boost to evening retail and hospitality spend by extending daylight hours during peak trading periods (Riley, 2026).
• QBCC Regulatory Changes: The Queensland Building and Construction Commission and Other Legislation Amendment Regulation 2026 commenced on 1 February. Impact: Increased reporting requirements for licensees aim to improve transparency and project delivery standards as the state navigates a $19 billion infrastructure pipeline (Ensure Legal, 2026).

Final Take

The Queensland market is currently benefiting from a “two-speed” growth model: CBD retail is being repositioned for luxury consumption, while outer-fringe industrial assets are seeing record rental growth due to land scarcity. As vacancy rates in key corridors like Logan and Acacia Ridge remain below equilibrium levels, the outlook for 2026 remains firmly in favour of landlords and developers with existing landholdings.

References

• API Magazine. (2026). Brisbane houses power past $1 million median as price growth surges into 2026. https://www.apimagazine.com.au/
• Colliers. (2026, February 11). Brisbane emerges as Australia’s industrial powerhouse after peak 2025. https://www.theindustrialist.com.au/
• Cushman & Wakefield. (2026, January 21). Brisbane MarketBeat Reports. https://www.cushmanwakefield.com/
• Ensure Legal. (2026, February 1). QBCC Subordinate Legislation Commenced 1 Feb 2026. https://ensurelegal.com.au/
• Ferns Finance. (2026, February 12). How do I identify a good commercial investment property in Logan?. https://www.fernsfinance.com.au/
• Herde, C. (2026, February 13). Sentinel sale pays off. The Courier-Mail.
• Herde, C. (2026, February 13). Towering Gabba future for adjoining corner properties. The Courier-Mail.
• JLL. (2026, February 10). Latest Industrial Vacancy Rates Across Australia. https://www.jll.com.au/
• Radar. (2026, February 6). McGees Wrap Up 6th February 2026. https://www.bne.mcgees.com.au/wp/
• Riley, R. (2026, February 19). Night-life tsar demands end to ‘outdated’ liquor laws. The Courier-Mail.
• The Australian. (2026, February 19). City mall to get $350m revamp. The Australian.
• The Courier-Mail. (2026, February 13). $30m for 4ha site in south. The Courier-Mail.
• The Courier-Mail. (2026, February 13). Property spruce up pays off big time. 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.

Liability Limited by a Scheme approved under Professional Standards Legislation

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

*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

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.

Liability Limited by a Scheme approved under Professional Standards Legislation

Market Overview

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).

Weekly Transaction Summary

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.

Comment

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).

Office – 155 Wharf Street, Spring Hill

155 Wharf Street, Spring Hill

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).

Office – Level 1, 220 Melbourne Street

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).

Retail & LFR – Windsor Exchange & Officeworks

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).

Development – Elimbah Master-Planned Site

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).

General News

• Regional Property Price Surge: Townsville property prices have surged 15.6 per cent in the past 12 months to a median of $605,000, while the Gold Coast has become Australia’s second most expensive market. Impact: The rapid escalation of dwelling values, which are now rising faster than wages in many regions, is driving a “spill-over” effect into the commercial sector as investors search for better yield profiles in regional markets (Foster, 2026).
• Infrastructure Pipeline Impact: The Queensland Government’s $116.8 billion infrastructure commitment is creating new commercial nodes along transport corridors.
  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).
• Retail Supply-Demand Mismatch: Current research indicates Queensland requires 2.6 times more retail space than is presently in the development pipeline to meet population growth.
  Impact: This scarcity is likely to drive further yield compression and rental growth for existing well-located retail assets (API Magazine, 2025).
• QBCC Regulatory Update: New amendments to the QBCC Regulation commenced on 1 February 2026, introducing stricter administrative requirements for licensees.
  Impact: Commercial developers must ensure immediate compliance to avoid infringement notices and potential project delays (Ensure Legal, 2026).

Final Take

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.

References

• API Magazine. (2025, August 26). Boom times looming for Queensland’s commercial property market. https://www.apimagazine.com.au/
• Ensure Legal. (2026, February 1). QBCC Subordinate Legislation Commenced 1 Feb 2026: What Changed And Why It Matters. https://ensurelegal.com.au/
• Foster, S. (2026, February 2). Prices rise more than wages. Townsville Bulletin, 2.
• Herde, C. (2026, January 30). Perfect fit for growth. The Courier Mail, 55.
• Herde, C. (2026, January 30). Quality drives retail sale. The Courier Mail, 55.
• Herde, C. (2026, January 30). Strata office lures interstate buyer. The Courier Mail, 55.
• Herron Todd White. (2025, August). Month in Review – Commercial. https://htw.com.au/
• KPMG. (2025, December). Commercial Property Market Update – December 2025. https://assets.kpmg.com/
• Radar, V. (2026, January 30). Queensland Commercial Property Market Update 2025. Ray White Commercial. https://raywhitecommercialncg.com/
• Ray White Commercial. (2025, June 24). Queensland 2025-26 Budget: Commercial property market implications. https://www.raywhitecommercial.com/

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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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

• 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.

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.

Liability Limited by a Scheme approved under Professional Standards Legislation

The Queensland commercial property market has entered 2026 with a resilient performance, underpinned by strong population growth and a tightening supply of prime assets (Herde, 2026a; Herde, 2026b). While residential mortgage stress is emerging as a significant macroeconomic headwind, institutional and private investors remain active, particularly in sectors offering defensive income streams (Viva Hyde, 2026; Herde, 2026b). The transition towards more stable interest rates has fostered a broadening recovery, with the “flight to quality” remaining the dominant investment theme across the industrial and retail sectors (The Courier-Mail, 2026; Herde, 2026b).

This Week’s Highlights

Industrial – UniSuper South West Portfolio

43-71 Rudd St, Oxley;

2508 Ipswich Rd, Darra;

104 Bandana St, Richlands

UniSuper has significantly expanded its industrial footprint in Brisbane’s south-west corridor with a $204 million portfolio acquisition (Herde, 2026b). The deal encompasses approximately 53,000 m² of Gross Lettable Area (GLA) across three strategic sites in Oxley, Darra, and Richlands (Herde, 2026b). The properties are fully leased to multiple tenants and benefit from exceptional connectivity to major intermodal transport nodes. This off-market transaction reflects continued institutional confidence in the South East Queensland logistics sector ahead of the 2032 Olympics (Herde, 2026b).

Retail – HomeCentre Morayfield

321-343 Morayfield Road, Morayfield

BWP Trust, the largest owner of Bunnings Warehouse sites in Australia, has acquired HomeCentre Morayfield for $48 million in a discreet off-market trade (Pallisco, 2026). The transaction, reflecting a 5.75% net passing yield, involves an 11,322 m² GLA centre situated on a prime 2.83ha site opposite the Morayfield SuperCentre. The asset is fully occupied by six national tenancies, including Nick Scali, Super Cheap Auto, and Amart Furniture, with a WALE of 4.04 years. The sale highlights institutional demand for high-quality retail assets with defensive cash flows in high-growth metropolitan corridors (Pallisco, 2026).

Office – Maroochydore Whole-Floor Investment

Level 1, 17 Duporth Avenue, Maroochydore

A private investor has secured Level 1 of 17 Duporth Avenue for $3.46 million, reflecting a yield of approximately 6.75%. The 583 m² NLA office asset is fully leased to high-calibre tenants, including HTA Advisory and CBRE. This transaction underscores the ongoing appetite for premium, income-producing office space in regional Sunshine Coast hubs, where low vacancy rates continue to support rental growth (CBRE Sunshine Coast, 2026).

General News

New ACCC Mandatory Merger Regime: A critical regulatory shift that came into effect on 1 January 2026, impacting high-value commercial property acquisitions (ACCC, 2026; HWL Ebsworth, 2025):

• The Change: The Australian Competition and Consumer Commission (ACCC) has transitioned to a “mandatory and suspensory” merger control regime.
• Impact on Property: Large-scale commercial real estate acquisitions, including significant leasehold interests and “creeping” land acquisitions, must now be formally notified to the ACCC if they meet specific turnover or transaction value thresholds.
• Thresholds: Generally applies to acquisitions where the combined Australian revenue of the parties exceeds $200 million and the target asset’s revenue exceeds $10 million (or transaction value exceeds $250 million).
• Industry Consequence: Investors must now factor in a mandatory “standstill” period (typically 15 to 30 business days for Phase 1) before completion. Failure to notify notifiable deals renders the transaction void

Queensland Mortgage Stress: Fresh data indicates Queensland homeowners have experienced a $22,000 annual increase in loan repayments over the past decade, the highest in the nation (Viva Hyde, 2026). For the commercial property industry, this reduction in household discretionary income is expected to place pressure on secondary retail assets, while reinforcing the value of non-discretionary “daily-needs” retail centres (Viva Hyde, 2026).

Regional Insurance Mutual Fund:

The Case of Leigh McCracken

Leigh McCracken, the publican of the historic Cobb and Co pub in St George, has seen his annual insurance premium skyrocket from $22,000 in 2016 to $168,000 in 2026. This reflects a more than 660% increase, leading him to scale back operations and work behind the bar himself to manage the financial burden.One of the main contribution factor is construction inflation. Rebuild costs in regional areas have increased around 40% since 2020 which increases the “sum insured” values.

Six councils in south-west Queensland are exploring a not-for-profit mutual insurance fund to counter soaring premiums, which have risen up to sevenfold for some commercial operators over the last decade (Scott & McKenna, 2026). This move could significantly improve the viability of regional commercial assets, such as hotels and local businesses, by lowering high fixed operating costs (Scott & McKenna, 2026).

Final Take

The January 2026 market is characterised by a definitive pivot towards “de-risked” essential services and income-secure assets. While high household debt and rising operational costs such as insurance create localised challenges, the industrial and infrastructure-linked sectors continue to thrive due to record-low vacancy and the state’s long-term growth fundamentals. Investors are increasingly prioritising assets with strong tenant covenants and prime locations to hedge against broader economic volatility (Herde, 2026b; The Courier-Mail, 2026).

References

ACCC. (2026, January 1). Mergers and acquisitions: The new merger control regime. Australian Competition and Consumer Commission. https://www.accc.gov.au/business/mergers-and-acquisitions

CBRE Sunshine Coast. (2026, January 12). Level 1, 17 Duporth Avenue, Maroochydore. RealCommercial. https://www.realcommercial.com.au/sold/property-level-1-17-duporth-avenue-maroochydore-qld-4558-504971752

Herde, C. (2026a, January 16). Residential expansion. The Courier-Mail, 61.

Herde, C. (2026b, January 16). Industrial boom attracts. The Courier-Mail, 62.

HWL Ebsworth. (2025, October 29). The New ACCC Merger Regime and Leases. https://hwlebsworth.com.au/the-new-accc-merger-regime-and-leases

Nolan, M. (2026, January 19). Investor buys CBD building. The Chronicle, 4.

Pallisco, M. (2026, January 21). Argus flips Brisbane growth corridor homemaker centre. RealEstateSource. https://www.realestatesource.com.au/argus-flips-brisbane-growth-corridor-homemaker-centre/

Scott, M., & McKenna, M. (2026, January 17). Region’s DIY insurance move. The Australian.

The Courier-Mail. (2026, January 16). Quality draws bidders. The Courier-Mail, 61.

Viva Hyde. (2026, January 17). Queensland leads the way for mortgage pain. The Gold Coast Bulletin, 25.

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.

Liability Limited by a Scheme approved under Professional Standards Legislation

McGees Wrap Up – 16 January 2026

Queensland Commercial Property Weekly Wrap-Up

Week Ending 16 January 2026

The Queensland commercial property market remains resilient entering the second half of January, bolstered by a significant jump in the NAB Quarterly Commercial Property Index to +11, which is the highest sentiment recorded in over five years. While the state’s $116.8 billion infrastructure pipeline provides a strong foundation, the sector is currently navigating the immediate impacts of widespread flooding across the north and west, which has triggered emergency disaster funding for 31 local government areas. Investor interest continues to follow a “flight to quality” trend, particularly within the Brisbane CBD office market and premium regional leisure assets (Cullinane, 2026; NAB, 2026; QRA, 2026).

Weekly Transaction Summary

Commercial Office & Retail – St. Francis House Sold

181 George Street, Brisbane City QLD 4000

McGees Property Brisbane is pleased to announce the successful sale and settlement of St. Francis House. This 4-storey boutique heritage building presented a compelling opportunity to secure a freehold commercial asset in a trophy location, situated opposite the soon-to-be-opened Griffith University Brisbane City campus and the former Treasury Casino. The sales campaign generated strong competitive interest from local and interstate investors, culminating in a sale price of $4,900,000. The asset is anchored by EzyMart on the ground floor and benefits from its proximity to major landmarks like Irish Murphy’s and the Queen’s Wharf precinct.

Leisure & Hospitality – Hamilton Island Acquisition

Hamilton Island, Whitsundays QLD 4803

In a landmark deal for the Australian tourism sector, global investment firm Blackstone has reached an agreement to acquire Hamilton Island from the Oatley family for approximately $1.2 billion. This transaction represents a major shift in the Whitsundays’ commercial landscape, ending more than 20 years of family ownership. The sale includes a substantial portfolio of five hotels, over 20 restaurants, a 301-berth marina, and a commercial airport. Notably, 70 per cent of the 1,133-hectare island remains undeveloped, providing Blackstone with significant long-term value-add and development opportunities (Cunningham, 2025).

Source: (Cunningham, 2025)

Office & Development – 41 George Street Conversion

41 George Street, Brisbane City QLD 4000

Dexus and Marquette Properties are advancing Australia’s first full-scale conversion of a 27-storey office tower into purpose-built student accommodation (PBSA). The project at 41 George Street will deliver 1,200 student beds to the Brisbane CBD by July 2026. This adaptive reuse initiative involves complex structural modifications, including the relocation of air-conditioning systems and the installation of a new sandstone-inspired facade. The project is being positioned as a blueprint for repurposing underutilised B-grade office assets into high-demand residential stock ahead of the 2032 Games (Nadin, 2025).

Source: (Nadin, 2025)

Retail – Fresh and Save Warehouse Development

100-106 Elizabeth Street, Aitkenvale QLD 4814

Haben Property Group has officially lodged a development application for a Fresh and Save food warehouse at the former Kingsvale and Sunvale sites in Townsville. The 1.01-hectare development represents the grocery operator’s first entry into the North Queensland market. Following the demolition of the abandoned commercial properties, the new warehouse format will include an on-site bakery and butchery. This move reflects a broader trend of institutional owners repositioning distressed or vacant regional commercial assets into essential-service retail hubs (Leighton, 2025).

Source: (Leighton, 2025)

General News

• The DRFA support is delivered primarily through the Queensland Rural and Industry Development Authority (QRIDA) and includes:

  • Disaster Assistance Loans (Up to $250,000): Concessional loans (currently 1.37%) for repairing damaged premises or replacing lost stock for businesses with direct physical damage.
  • Essential Working Capital Loans (Up to $100,000): For businesses suffering loss of income due to disruptions, covering rent, rates, and wages.
  • Disaster Recovery Grants ($9.98m allocation): Dedicated to immediate clean-up and rapid trading resumption.

• Victoria Park Stadium Works Upheld: Federal Environment Minister Murray Watt confirmed the decision to allow the $3.8 billion Olympic Stadium at Victoria Park to proceed following a rejected Indigenous heritage challenge.
  Impact: Legal certainty provides security for ongoing Herston precinct investment (InDaily QLD, 2026).

• Cairns CBD Tenant Sentiment: Local business owners have voiced concerns regarding high commercial rents and CBD safety.
  Impact: This disconnect poses a vacancy risk, potentially driving a shift toward activation-based leasing models (The Cairns Post, 2026).

• Mandatory Disclosure Regime: The new Seller Disclosure Regime under the Property Law Act is in full effect.
  Impact: Standardised disclosures reduce “transactional friction” and increase transparency for buyers (Henry William, 2025).

Final Take

The Queensland commercial market is currently defined by high-stakes strategic transitions. The $1.2 billion Hamilton Island sale and the 41 George Street office conversion demonstrate that capital is flowing toward assets with unique value-add potential. Despite regional weather challenges, the state’s macro outlook remains positive, supported by record-high investor confidence and a clear, legally secured path for major Olympic infrastructure.

References

Cunningham, C. (2025, December 24). Hamilton Island sold for $1.2bn. The Cairns Post.

Henry William. (2025, August 1). Recap: Update to property law in Queensland. Henry William Lawyers.

InDaily QLD. (2026, January 15). Decision made on bid to stop Brisbane’s Olympic stadium. InDaily QLD.

Leighton, S. (2025, December 29). Rubble to retail in works. Townsville Bulletin.

McGees Property. (2026). McGees Property Brisbane announce successful sale and settlement of 181 George Street.

NAB. (2026, January 12). Quarterly Australian Commercial Property Survey: Q4 2025. National Australia Bank.

Nadin, S. (2025, December 21). Brisbane CBD office block to become 1200-bed student digs. The Courier-Mail.

Queensland Reconstruction Authority [QRA]. (2026, January 14). Local governments able to access flood assistance. Queensland Government.

The Cairns Post. (2026, January 8). Central Business Dilemma: Residents reveal key problems. The Cairns Post.

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.

Liability Limited by a Scheme approved under Professional Standards Legislation

Queensland Commercial Property Weekly Wrap-Up

Week Ending 12 December 2025

Market Overview

The Queensland commercial property market is shifting towards practical, secure investments. This week alone, over $400 million was transacted in the retail sector, dominated by Charter Hall’s purchase of convenience-based assets. This highlights strong institutional confidence in properties that generate income from essential, non-discretionary spending. Simultaneously, developers are adjusting their strategies. While land values in growth corridors like Bridgeman Downs are hitting records of $758/m², developers in coastal areas like Caloundra are moving away from high-rise projects to manage rising building costs. Across all sectors, whether it is childcare yielding 5.35% or industrial assets at 4.2%, capital is targeting properties that offer clear and lasting value (Herde, 2025a; Wilmot, 2025).

This Week’s Highlights

Retail – Charter Hall Acquisitions (Various)

Addresses:
Gympie Central, Gympie
Whitsunday Plaza, Cannonvale
Southport Park Shopping Centre, Southport

Institutional heavyweight Charter Hall is solidifying its dominance in the convenience retail sector, advancing on a $250 million acquisition of three sub-regional centres from Vicinity Centres. The portfolio includes Gympie Central (14,154 m²) and Whitsunday Plaza (22,314 m²), both high-performing assets anchored by Woolworths and Big W with moving annual turnovers exceeding $160 million each. In a separate off-market play, the fund also secured the Southport Park Shopping Centre for $152.5 million. These acquisitions underscore a strategic institutional “swap,” with Vicinity recycling capital into major redevelopment projects while Charter Hall doubles down on defensive, high-frequency retail assets (Wilmot, 2025).

Retail & Automotive – Moreton Bay Dealership Portfolio

Addresses:
731-737 Deception Bay Rd, Rothwell
247-249 Morayfield Rd, Morayfield

Victorian-based Plantation Capital Limited has entered the Queensland market, acquiring two fully leased automotive assets for $26.6 million through its Strategic Opportunities Growth and Income Fund. The portfolio, occupied by Keystar Subaru, spans nearly 20,000 m² of strategic land. The Rothwell showroom transacted for $13.2 million, while the prime corner site at Morayfield fetched $13.4 million, reflecting a combined yield of 6.7%. The campaign generated 53 inquiries, validating the depth of investor appetite for secure income assets in the Moreton Bay growth corridor, which is projected to grow by nearly 70% by 2041 (Herde, 2025a).

Development – Caloundra Mixed-Use Site

Address: 139 Bulcock St & 70-76 Omrah Ave, Caloundra

A private builder-developer has purchased a prime 6,200 m² site in central Caloundra for $17 million (plus GST). The vendor, Henzell Property Group, divested the asset as part of a strategic corporate pivot away from high-rise apartments toward lower-density townhouse products. The site holds a development approval for a 30-metre high mixed-use project, with potential for up to 45 metres. The new owner has engaged OGE Group to refine the scheme, focusing on a staged delivery model that can better navigate the current construction cost environment (Herde, 2025b).

Medical & Childcare – Redbank Plains Centre

Address: 69-71 Willow Rd, Redbank Plains

In the largest childcare transaction for Queensland this year, private investors have paid $10.7 million for a newly built facility leased to Honour Early Learning. The deal reflects a tight yield of 5.35%, a testament to the premium investors are placing on essential service assets. With childcare rents in the region now exceeding $4,000 per place, the sale highlights the robust fundamentals of the western growth corridor, where population expansion is underpinning long-term demand for social infrastructure (Herde, 2025c).

Development – Bridgeman Downs Subdivision Site

Address: 260 & 280 Ridley Rd, Bridgeman Downs

Ausbuild has acquired a 2.18-hectare residential site for $15.29 million, setting a new suburb record. Purchased from Keylin Land Holdings (who acquired the lots in 2024 for $10.5m), the site is approved for a 33-lot subdivision. The transaction equates to a land rate of $758/m². This rapid capital appreciation ($4.8m uplift in one year) illustrates the fierce competition for development-ready infill land in Brisbane’s northern corridor (Herde, 2025c).

Industrial – Sumner Office/Warehouse

Address: 3 Jijaws St, Sumner

Adelaide-based investor Prosperity Property Portfolio No5 purchased this 2,626 m² facility for $5.3 million prior to auction. Occupied by Komatsu Forklift Australia, the asset sold on a notably sharp yield of 4.2%. The aggressive pricing was driven by the buyer’s recognition of significant rental reversion potential (“untapped upside”), as the passing income was identified as being well below current market rates. This deal sets a new benchmark for value-add industrial assets in Brisbane’s western corridor (Herde, 2025d).

Summary of Transactions (Week Ending 12 December 2025)

General News

Healthscope Asset Sell-Off: Mater in Exclusive Talks

Receivers McGrathNicol have entered the final stages of the Healthscope portfolio divestment, granting exclusive due diligence rights on four major hospital sites. For Queensland, the significant development is that the Gold Coast Private Hospital is reportedly in exclusive negotiations with Mater Health (though St John of God remains a potential contender). This follows a competitive process advised by Houlihan Lokey to recover debt owed to lenders.

Impact on Commercial Industry:

• Sector Consolidation & NFP Dominance: If Mater secures this asset, it represents a major consolidation of Queensland’s private healthcare infrastructure into the hands of a Not-For-Profit (NFP) operator. NFPs typically hold assets in perpetuity to serve community charters, meaning this prime asset will effectively be removed from the trading market forever. This contraction of tradable stock will likely increase scarcity value for remaining freehold medical assets.
• Valuation Benchmarks: The aggressive bidding war for these assets,despite the operator’s financial collapse,confirms that the underlying property fundamentals of major hospitals remain “bulletproof.” We can expect capitalisation rates for medical assets to remain compressed as institutional capital seeks safety in “essential services” amid broader economic volatility.

Urban Planning: Call for “Bridge Blitz” & Toowong Density

Former Government Architect Malcolm Middleton has issued a strong call for a massive infrastructure drive, advocating for 10 new pedestrian/cycle bridges to “stitch the city together.” He specifically identified key links such as Toowong-to-West End and Highgate Hill-to-UQ. Crucially, Middleton also voiced strong support for the controversial $1bn “Toowong Central” project by Verso Developments, which proposes three towers up to 58 storeys.

Impact on Commercial Industry:

• Unlock Code for Density: Middleton’s commentary effectively links density to connectivity. For developers, this reinforces the “Transit-Oriented Development” strategy: sites near heavy rail (like Toowong) that can also claim cross-river connectivity will likely receive greater support for height uplifts.
• Precinct Re-Rating: If a bridge connects Toowong to West End, Toowong would effectively cease to be a “satellite” hub and become an extension of the inner-city lifestyle precinct. This would drive substantial rental growth for retail and office assets in the area, justifying the proposed high-density residential pipeline and potentially triggering a wave of site amalgamation along the riverfront.

Market Strategy: The Pivot from High-Rise to Low-Rise

A recurring theme in this week’s transaction data (specifically the Henzell Caloundra sale) is the shift in development strategy due to construction costs. Established developers are divesting sites with high-rise approvals or re-designing schemes to deliver townhouse or low-rise product instead.

Impact on Commercial Industry:

• Supply Crunch Incoming: As developers step back from delivering high-density apartment towers due to feasibility risks, we are likely to see a significant shortfall in new unit supply delivered in 2026-2027. This will exacerbate the rental crisis and likely push commercial rents for mixed-use ground-floor retail higher as available stock dwindles.
• Land Banking Value: This risk aversion is driving a premium for “manageable” subdivision sites (like the Ausbuild Bridgeman Downs purchase at a record rate) versus complex vertical construction sites. Commercial agents should note that sites with “easy” execution pathways are currently commanding higher liquidity than “trophy” sites with complex build requirements.

Final Take

The clear signal from this week’s activity is that while capital is abundant, it is highly selective. The market is currently splitting into two distinct paths:

• Big Institutional Investors: Are aggressively buying large, safe assets with guaranteed income (like Charter Hall’s shopping centre purchases).

• Private Developers: Are moving away from risky high-rises and focusing on lower-density, easier-to-build projects to avoid construction problems.

The Bottom Line: Certainty is the most valuable commodity right now. Properties with secure tenants or simple development plans are selling for record prices. In contrast, complex or speculative sites are much harder to sell and require a very convincing strategy to find a buyer.

References

• Healthscope suitors win exclusive due diligence. (2025, December). The Australian (DataRoom).
• Herde, C. (2025a, December 5). Driving hard bargains. The Courier-Mail, p. 67.
• Herde, C. (2025b, December 5). Sunshine Coast developer divests Caloundra site. The Courier-Mail, p. 68.
• Herde, C. (2025c, December 5). New purpose-built childcare centre sold in boom. The Courier-Mail, p. 69.
• Herde, C. (2025d, December 5). Adelaide investor sees future potential in warehouse. The Courier-Mail, p. 68.
• Houghton, D. (2025, December 6). Former government architect says Brisbane needs a massive bridge-building blitz. The Courier-Mail.
• Wilmot, B. (2025, December 8). Charter Hall’s sights on $250m centres. The Cairns Post, p. 20.

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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Market Overview

Queensland’s commercial property sector continues to demonstrate resilience across core markets, with strong transactional momentum in office, retail, medical, and industrial assets. Investor demand remains broad-based, driven by tightening vacancy in the Sunshine Coast office market, renewed institutional appetite for non-discretionary retail, and sustained growth in the Gold Coast industrial corridor. Regulatory changes affecting retail landlords and renewed scrutiny around illicit tobacco trading are reshaping risk considerations. Meanwhile, ongoing challenges in Brisbane’s CBD retail sector highlight the need for precinct activation and trading-hour reforms (“Brisbane CBD Retail Challenges,” 2025; “Gold Coast Industrial Growth,” 2025; Herde, 2025; Wilmot, 2025).

This Week’s Highlights

Office – Sunshine Coast Office Portfolio Acquisition

Address: 20 Innovation Parkway, Birtinya & 5 Plaza Parade, Maroochydore

RM Capital has finalised the purchase of two major Sunshine Coast office buildings following an oversubscribed investor offering. The Birtinya asset sold for $12 million (yield 8.14%, 2678 m² NLA), while the Maroochydore asset transacted for $7.775 million (initial yield 5.92%, projected fully-let yield 6.50%). These transactions underscore the growing appeal of regional office markets (Herde, 2025).

Retail & LFR – Southport Park Shopping Centre

Address: Benowa & Ferry Roads, Southport

Institutional giant Charter Hall has acquired the triple-supermarket-anchored Southport Park Shopping Centre for $152.5 million. The 19,900 m² precinct sits on a 6.5 ha mixed-use site and is one of only ten such centres nationally. This acquisition highlights the continued institutional dominance in the non-discretionary retail sector (Wilmot, 2025).

Retail & LFR – Beenleigh Lifestyle Centre

Address: 137 George Street, Beenleigh

A high-net-worth investor has purchased the 4,180 m² Large Format Retail centre for $19.5 million, achieving a 5.66% yield. Anchored by national retailers including Supercheap Auto, Autobarn, Petbarn, and Jaycar, the asset demonstrates the yield compression occurring in prime LFR assets (Herde, 2025).

Office – CBD Strata Acquisition, Brisbane City

Address: Level 6, 371 Queen Street, Brisbane City

Boutique design firm Derlot has purchased a 250 m² floor within the heritage-listed Preston House for $1.2 million. The acquisition reflects continued owner-occupier strength in the CBD strata market, with businesses prioritising character assets in prime locations (Herde, 2025).

Medical – Strata Medical Investment

Address: 1/1808 Logan Road, Upper Mount Gravatt

A private investor purchased the 464 m² strata medical suite for $5.5 million, reflecting a sharp 5.78% yield. The property is leased to I-MED Radiology, confirming the premium investors are willing to pay for essential service tenants (Herde, 2025).

Industrial & Development – Bulimba Land Consolidation

Address: 58–64 Taylor Street, Bulimba

A private developer acquired 2,042 m² across three amalgamated sites for $5 million (plus GST). With redevelopment planned subject to council approval, this transaction highlights the scarcity of infill industrial land in Brisbane’s inner east (Herde, 2025).

Summary of Transactions (Week Ending 28 November 2025)

General News

Illicit Tobacco Crackdown – New Landlord Penalties

Queensland Health has executed its first major 90-day closure of an alleged illicit tobacco retailer under strengthened legislation. Landlords now face fines up to $166,900 and potential imprisonment if they knowingly permit illegal activity. This development significantly shifts liability, requiring commercial landlords to urgently audit tenant usage clauses and conduct regular inspections to mitigate legal exposure (“Illicit Tobacco Retailer Closed,” 2025).

The shift in liability means landlords can no longer be passive regarding tenant operations. The risks have moved from purely reputational to severe financial and criminal penalties.

• Significant Liability Escalation: The introduction of fines up to $166,900 and potential imprisonment fundamentally changes the risk profile of commercial leasing. You are now effectively a secondary enforcer of the law.
• Definition of “Knowingly Permit”: The legal threshold “knowingly permit” suggests that turning a blind eye to suspicious activity is dangerous. If a landlord ignores obvious signs—such as blacked-out windows, heavy foot traffic for a small shop, or lack of standard inventory—they could be deemed complicit.
• Urgency of Lease Audits: Landlords must immediately review the “Permitted Use” clauses in their leases. Vague terms like “retail store” or “convenience store” may need to be tightened to explicitly exclude the sale of illicit substances or require strict adherence to tobacco licensing laws.
• Mandatory Regular Inspections: Passive property management is now a liability. Regular, documented property inspections are essential to prove due diligence. Landlords need to ensure they have a paper trail showing they monitored the property and acted on any suspicions.
• Asset Risk: A 90-day government-enforced closure creates a “dead” asset. During this time, the tenant is unlikely to pay rent, and the landlord cannot easily re-let the premises, leading to substantial income loss on top of potential fines.

Gold Coast Industrial Growth – Yatala Surges 30.8%

The Yatala Enterprise Area has recorded a massive 30.8% increase in industrial property values, driven by intense demand and major projects including the $500 million Visy ARRC. Supply constraints and the diversification of industrial uses continue to drive capital appreciation (“Gold Coast Industrial Growth,” 2025). This growth trajectory suggests yields will compress further as the corridor solidifies its status as a prime logistics hub.

Yatala has effectively transitioned from a “secondary” industrial precinct to a prime logistics hub. This is driven largely by the “land-banking” scramble ahead of the 2032 Olympics and the scarcity of large-format industrial land in Brisbane’s TradeCoast (City of Gold Coast, n.d.). The $500 million Visy Glass Re-manufacturing facility is the anchor tenant for this new era, but it represents more than just investment; it facilitates a strategic land swap. Visy’s move to Yatala frees up their South Brisbane site, which is earmarked for the International Broadcasting Centre for the 2032 Games (Visy, n.d.).

Brisbane CBD Retail Challenges

A Courier-Mail investigation revealed low weekend trading participation in the CBD, with 34 of 73 Queen Street Mall retailers closed on Sundays and foot traffic sitting at 82% of pre-COVID levels (“Brisbane CBD Retail Challenges,” 2025). Industry leaders are calling for extended trading hours and live public activations to revitalise the precinct. Without strategic intervention, CBD retail rental growth risks stagnating compared to high-performing suburban non-discretionary centres (Brisbane Development, 2025).

The struggle of Brisbane CBD retail is a symptom of the “Donut Effect”, where suburban centres thrive at the expense of the inner city, compounded by rigid trading hours. While suburban Westfields are booming with weekend family traffic, the CBD’s “Sunday Ghost Town” status creates a self-fulfilling prophecy (National Retail Association, n.d.). The recovery to only 82% of pre-COVID foot traffic suggests that the “return to office” mandate has plateaued, and without a weekend economy, CBD retail assets are underperforming.

Impact to Commercial Industry

• Lease Restructuring: Commercial landlords in the CBD may need to move away from fixed-rent models toward turnover-rent models with “activation clauses,” effectively subsidising tenants to open on Sundays to build critical mass.
• Asset Repositioning: Owners of B-grade retail assets in the CBD will face pressure to convert retail space into “experiential” use (gyms, medical, entertainment) which is less dependent on traditional window-shopping foot traffic.
• Valuation Risks: If the weekend economy does not recover, the valuation spread between CBD retail and suburban neighbourhood centres will widen. Banks may view CBD retail as higher risk, impacting LVRs for refinancing.

Final Take

This week’s activity underscores the robustness of Queensland’s commercial property market ahead of 2026. Significant capital flows into office, retail, medical, and industrial assets highlight continued investor conviction, while tightening development conditions and rising construction costs amplify the value of well-located existing stock. Retail precincts continue to polarise, with non-discretionary centres performing strongly while CBD retail remains challenged (Herde, 2025; Wilmot, 2025).

References

• Brisbane Development. (2025, January 29). Queen St Mall vibrancy has faded after removal of retail pods + ways to revitalise. https://brisbanedevelopment.com.au/queen-st-mall-vibrancy-has-faded-after-removal-of-retail-pods-ways-to-revitalise/
• Brisbane CBD retail challenges: Investigation reveals low weekend trading. (2025). The Courier-Mail.
• City of Gold Coast. (n.d.). Yatala–Stapylton industrial area expansion investigation. Retrieved December 4, 2025, from https://www.goldcoast.qld.gov.au/Services/Projects-works/Yatala-Stapylton-industrial-area-expansion-investigation
• Gold Coast industrial growth: Yatala surges 30.8%. (2025). The Gold Coast Bulletin.
• Herde, C. (2025). [Various commercial property transaction reports]. The Courier-Mail.
• Illicit tobacco retailer closed for 90 days. (2025). The Cairns Post.
• National Retail Association. (n.d.). Trading hours. Retrieved December 4, 2025, from https://www.nationalretail.org.au/topics/trading-hours/
• Visy. (n.d.). Brand new Yatala glass plant. Retrieved December 4, 2025, from https://www.visy.com/about/projects-and-investments/brand-new-yatala-glass-plant
• Wilmot, B. (2025). Charter Hall secures Southport Park. The Australian.

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.

Liability Limited by a Scheme approved under Professional Standards Legislation