Queensland Commercial Property Weekly Wrap-Up
Week Ending 01 May 2025
The Brisbane commercial market continues to demonstrate resilience, characterised by strategic consolidation in the development sector and a “flight-to-quality” in the office and retail markets (Herde, 2026). While the RBA has maintained a “higher-for-longer” cash rate of 4.10 per cent since March, investor sentiment remains positive, particularly for assets with strong fundamentals or high-growth potential in tightly held precincts (Robin, 2026).
| Transaction Type | Sector | Property Address | Details |
|---|---|---|---|
| SOLD | Development | 37-39 Browning St & 18-20 O’Connell St, South Brisbane | $21,000,000 site consolidation for a 92-dwelling project. |
| SOLD | Retail | 1 Arcadia St, Noosa Heads | $9,400,000 retail centre sold on a 5 per cent yield. |
| LEASED | Retail & LFR | Shop 1-3, 177 Osborne Rd, Mitchelton | 1,112 sqm leased to Choice the Discount Store for $389,000 gross p.a. |
| LEASED | Industrial | 7/10 Depot Street, Banyo | 275 sqm modern office/warehouse leased for $68,750 p.a. plus outgoings. |
| LEASED | Medical | 1/4 Merlin Tce, Mount Gravatt | 219 sqm shopfront leased to Balance Chiropractic for $115,000 gross p.a. |
| LEASED | Industrial | 1/16 Crockford St, Milton | 203 sqm unit leased to Ozsolar No.2 for $42,000 net p.a. |
| LEASED | Office | 2/175 Given Tce, Paddington | 35 sqm office leased to Hansen Family Law for $30,000 gross p.a. |
| LEASED | Office | 10/60 Macgregor Tce, Paddington | 98 sqm office leased to Robinson White Legal for $46,000 gross p.a. |
| LEASED | Office | 1165 Kelvin Grove Rd, Kelvin Grove | 169 sqm office leased to Bear Marketing for $69,500 gross p.a. |
This Week’s Highlights
Development – South Brisbane Luxury Consolidation
Levvel Property Group has executed a significant consolidation play, acquiring two adjoining sites for a total of $21 million. The group paid $15 million for the 1,822 sqm Browning Street site and $6 million for the 910 sqm O’Connell Street site. This strategic merger improved the combined site yield by 50 per cent. Plans have been lodged for a 10-storey project featuring 92 high-end boutique dwellings, doubling down on the precinct following the success of their nearby Atelier project (Herde, 2026).
Office – Potential $700m CBD Divestment
Dexus is reportedly testing the market for its premium 34-storey office tower at 480 Queen St with a price tag exceeding $700 million. The asset, which has a book value of $700 million, features large 2,800 sqm floor plates and premium end-of-trip facilities. This potential sale aligns with the company’s capital recycling strategy as it progresses with the $2.5 billion Waterfront Brisbane development (Herde, 2026).
Retail & LFR – Major Mitchelton Lease
Choice the Discount Store has secured a 1,112 sqm large-format retail tenancy at Shop 1-3, 177 Osborne Rd on a 10-year lease with options. The deal reflects a gross annual rent of $389,000 plus GST. The campaign saw significant demand, attracting 78 inquiries and seven formal offers, highlighting the scarcity of quality large-format space on Brisbane’s northside (Herde, 2026).
Retail – Noosa Heads Investment
A private investor has acquired a 723 sqm retail centre at 1 Arcadia St for $9.4 million following a competitive EOI campaign. Despite initial investor concerns regarding the building’s age and upcoming lease expiries, the asset sold on a 5 per cent yield. The property includes 10 diverse tenancies and triple street frontage in a commanding Noosa Heads position (Herde, 2026).
Industrial – Banyo Modern Fitted Suite
A 275 sqm modern office and warehouse tenancy at 7/10 Depot Street has been leased for $68,750 per annum plus outgoings and GST. The property includes a 95 sqm ground floor office, a 150 sqm first floor office, and a 30 sqm warehouse component. The tenancy features seven exclusive car spaces and a 47 sqm exclusive external courtyard (Realcommercial, 2026).
General News
- Queensland has made its 50c-a-trip public transport trial permanent. While this supports commuter patronage, experts suggest it may impact the long-term business case for new infrastructure projects by reducing fare recovery ratios (Robin, 2026).
Impact: Increased patronage supports foot traffic for transit-oriented retail, but may constrain future government capital for network expansions.
From a retail perspective, the scheme acts as a significant driver for foot traffic within transit-oriented developments (TODs), as the drastically lowered cost of commuting encourages higher patronage across the network. This increased flow of people directly enhances the value proposition for ground-floor retail and service-based tenancies located near major hubs like South Brisbane, Fish Lane, and the CBD.
However, the “Impact” note highlights a growing concern among economists and consultants regarding the “fare recovery ratio”, the proportion of operating costs covered by commuter fares. By making fares almost free, the government must cover approximately $12.50 for every additional trip induced, according to LEK consultants. For the commercial industry, this creates a potential “funding gap” for future infrastructure. When fare revenue is negligible, it becomes harder for the state to justify the business case for new, multi-billion-dollar projects like further Metro expansions or heavy rail upgrades, which are traditionally the primary catalysts for long-term commercial land-value appreciation - The RBA maintained the cash rate at 4.10 per cent in its most recent meeting. Market analysts note that while rates are stable, the “higher-for-longer” outlook continues to influence yield expectations across core assets (Robin, 2026).
Impact: Investors are prioritising assets with strong income security and rental growth potential to offset debt costs. - Infrastructure projects like the $2.5 billion Waterfront Brisbane are progressing, with expected completion in 2028 (Herde, 2026).
Major construction activity continues to revitalise the CBD, attracting offshore capital and reinforcing Brisbane’s status as a top-tier investment destination.
Final Take
The Queensland market is currently defined by a high level of competition for quality assets across all price points. Whether it is a $9.4 million retail strip or a $700 million office tower, the common thread is a strong appetite for properties with reliable fundamentals and quality locations. This suggests high investor confidence in the state’s medium-term economic outlook despite broader national headwinds.
References
Herde, C. (2026, April 24). Developer doubles up. The Courier-Mail.
Herde, C. (2026, April 24). Investor buys into Noosa. The Courier-Mail.
Herde, C. (2026, April 24). Expanding discount chain secures Choice retail lease. The Courier-Mail.
Realcommercial.com.au. (2026). 7/10 Depot Street, Banyo, Qld 4014. https://www.realcommercial.com.au/leased/property-7-10-depot-street-banyo-qld-4014-504934320
Robin, M. (2026, April 23). Why free public transport is a terrible idea. The Australian Financial Review.
The Courier-Mail. (2026, April 24). Leases. The Courier-Mail.
For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane
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