Queensland Commercial Property Transactions
This week’s Queensland commercial property market saw strong activity across multiple sectors, with significant transactions in the office, industrial, retail, and hospitality segments. A highlight was the $46.5 million sale of a large industrial landholding in Rocklea, reinforcing ongoing demand for well-located assets with redevelopment potential. The hospitality sector also saw major movement with the acquisition of Flagstone Tavern under a long-term leasehold arrangement. Meanwhile, office and retail assets continued to attract investor interest, particularly in Brisbane’s inner suburbs.
Office
36 Park Road, Milton, QLD
A boutique commercial real estate agency has acquired a two-level office building for $3.975 million. The new owner plans to relocate from Woolloongabba and refurbish the property, leasing out additional tenancies. The location will benefit from the area’s ongoing development, including new residential high-rise projects.
179 Given Terrace, Paddington, QLD
A 575 sqm commercial building has been purchased for $4.25 million, reflecting a 4.82% yield. The property is fully leased to four tenants, including an electrical company, a physiotherapy clinic, a tutoring business, and a real estate agency.
Industrial
1/35 Paringa Road, Murarrie, QLD
A 296 sqm industrial unit has been sold for $1.3 million at a 5.77% net yield. The property is leased on a five-year term with a five-year option.
65 Grindle Road, 1717 & 1727 Ipswich Road, Rocklea, QLD
One of the largest land holdings in Brisbane’s western corridor has been sold for $46.5 million. The 9-hectare property spans three titles and includes 12 buildings with a mix of office-warehouse, cold storage, and retail spaces. The asset has a 32% site coverage, offering further development potential.
1283 Lytton Road, Hemmant, QLD
A freestanding 1,080 sqm industrial warehouse in Brisbane’s TradeCoast precinct has changed hands for $4.8 million. The property includes 29 on-site car spaces and is leased to an existing tenant until December 2025, generating an annual net income of $310,864 plus outgoings and GST.
3351 Pacific Highway, Slacks Creek, QLD
A 1,400 sqm warehouse with a 400 sqm office space has been sold for $3.85 million. The property had been on the market for eight years, with the owner waiting for price expectations to be met.
Retail
174 Boat Harbour Drive, Pialba, QLD
A multi-tenanted regional convenience centre has been sold for $7.45 million, achieving a 6.47% passing yield. The 894 sqm site on a 4,250 sqm corner block includes a Red Rooster drive-through, Night Owl convenience store, H&R Block, and other fast-food outlets.
Hotels & Hospitality
Flagstone Tavern, Flagstone, QLD
A newly built pub in Brisbane’s southwestern suburbs has been acquired as part of an expansion strategy. The property, located next to a shopping centre, was purchased under a long-term leasehold of approximately 55 years for $14 million (*). The freehold remains with the previous owner, with a reported rent of around $1 million annually.
Development
Chelsea Avenue, Broadbeach, QLD
Construction is set to commence on Affinity Broadbeach, a 39-storey residential tower featuring two- and three-bedroom apartments with large balconies. The development is positioned in the sought-after Chelsea Avenue precinct and will add to the growing residential supply in the area.
Summary
This week’s commercial property market in Queensland highlighted strong demand across multiple sectors. Industrial properties continued to attract large-scale investment, with Rocklea Central’s $46.5 million sale being a standout transaction. The office market saw notable transactions in Brisbane’s inner suburbs, reinforcing the city’s ongoing development momentum. Retail assets remained attractive to investors, with the Pialba convenience centre sale achieving a solid yield. Meanwhile, the hospitality sector saw further expansion with the acquisition of Flagstone Tavern under a long-term leasehold. With construction set to begin on Affinity Broadbeach, the Gold Coast’s residential market remains active. The sustained investor interest in Queensland’s commercial real estate signals continued confidence in the market’s growth potential.
(*) What is a long-term leasehold?
A long-term leasehold means that instead of purchasing the freehold ownership (outright ownership of the land and buildings), the buyer has acquired the right to use and operate the property for a fixed period—in this case, approximately 55 years.
How It Works:
- Lease Agreement – The buyer (lessee) leases the property from the freehold owner (lessor) for a fixed term.
- Ownership Structure – The freehold owner retains legal ownership of the land and buildings, while the leasehold owner has the right to operate the business and earn income from the property during the lease period.
- Rental Payments – The leasehold owner typically pays rent to the freehold owner. In this case, the reported rent is approximately $1 million per year.
- Expiry & Renewal – When the lease expires, the property reverts to the freehold owner, unless there is an option to renew for an additional term.
Benefits & Considerations:
- Lower upfront cost – A leasehold purchase is generally cheaper than buying freehold, as the buyer does not own the land indefinitely.
- Ongoing rent obligations – The leaseholder must pay rent to the freehold owner for the duration of the lease.
- Limited control over major changes – Leaseholders may need permission from the freehold owner for major renovations or redevelopments.
- Depreciating asset – As the lease term reduces over time, the leasehold property’s value may decline unless the lease is extended or renewed.
Example in this Transaction:
- The Flagstone Tavern was acquired under a 55-year leasehold for $14 million, meaning the buyer controls and operates the business but does not own the land or buildings outright.
- The freehold remains with the original owner, who collects an annual rent of approximately $1 million.
- This structure allows the buyer to benefit from business operations without the full capital investment to purchase the land.
For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane
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