Queensland Commercial Property Weekly Wrap-Up
Week Ending 25 September 2025
Market Overview
The Queensland commercial property market remains resilient with key movements in the Brisbane CBD office and development sectors, alongside rising challenges in the industrial and insurance spaces. Southern institutional capital continues to shape Brisbane’s skyline while infrastructure upgrades and policy gaps highlight emerging priorities for the property sector.
This Week’s Highlights
Office
69 Robertson Street, Fortitude Valley, QLD 4006 , Boutique Office Acquired for $8M
Victorian-based CR Kennedy & Company acquired this four-level, 1,006 sqm office building for $8 million. The asset was partially leased at sale and drew strong pre-settlement tenant interest, reflecting ongoing confidence from interstate investors in Brisbane’s high-performing office market (Herde, 2025).
Level 2, 46 Edward Street, Brisbane City, QLD 4000 , CBD Strata Office Sells at 5.25% Yield
A local investor secured a 434 sqm strata office floor at River Quarter for $2.4 million, fully leased to a national medical group. The 5.25% yield is noted as the strongest for the asset class in the CBD since 2020 (Herde, 2025).
Industrial & Logistics
Unit 6, 59,63 Eastern Road, Browns Plains, QLD 4118 , Leased to Local Carpenter
McGees Property successfully leased this 311 sqm high-clearance warehouse with 48 sqm of office space and four exclusive car parks to a local carpentry business for $60,000 gross per annum. Modern finishes and three-phase power make it well-suited for trades and light manufacturing uses.
General News
Brisbane Metro Tunnel Opens to Pedestrians Ahead of Launch
The newly completed 213m CBD bus,metro tunnel, part of the Brisbane Metro project, will carry 1,400 weekday trips, easing congestion on Adelaide Street and Victoria Bridge (Mulveney, 2025). This critical infrastructure is expected to improve public transport reliability, with services set to increase to 3-minute intervals.
Commercial Insight: Improved transit access enhances CBD office attractiveness, particularly for assets near King George Square and North Quay. This may support stronger tenant retention and premium leasing rates over time.
Flood Mapping Expands: Insurance Premiums to Rise
Brisbane City Council’s new flood overlays have added 10,000+ properties to risk zones in the Breakfast Creek, Jindalee and Windsor catchments (O’Malley, 2025). Historical data shows premiums have already risen up to 125% in affected areas.
Commercial Insight: Commercial properties in low-lying and creek-adjacent areas are expected to see elevated insurance premiums. Owners should assess flood exposure and budget accordingly for increased holding costs.
Shayher Group Lodges Twin-Tower DA for North Quay Site
Taiwanese developer Shayher Group submitted plans for twin towers at 309 North Quay, Brisbane City, QLD 4000, including 1,122 residential units, 236 hotel suites, and a two-level sky restaurant 180m above ground. Designed by Blight Rayner and Plus Architecture, the development includes retail, lifestyle amenities, and public access features (O’Malley, 2025).
Commercial Insight: Major mixed-use developments like this increase pressure on remaining CBD commercial land and elevate the profile of the North Quay precinct.
Institutional Capital Dominates Brisbane CBD Office Ownership
Analysis reveals firms like Charter Hall and Dexus now dominate the ownership of major Brisbane office towers, with limited representation from Queensland-based funds (The Courier-Mail, 2025). Charter Hall alone controls eight towers and is developing 360 Queen Street, Brisbane City, QLD 4000.
Commercial Insight: The concentration of ownership by southern funds confirms Brisbane’s status as a Tier-1 office market, likely to see increasing institutional capital and rising competition for core assets.
Brisbane Facing Critical Industrial Land Shortage
SA1 Property reports show Greater Brisbane will absorb over 210ha of industrial land annually, exhausting available supply within five years. The Property Council is advocating for a $500m Industrial Infrastructure Fund to unlock future supply. Meanwhile, the 60ha BrisWest Industrial Estate Stage 2, Sumner, QLD 4074 has been launched to market in the Western Corridor (The Courier-Mail, 2025).
Churches Build Wealth Through Expansive QLD Property Holdings
A recent investigation revealed that Queensland’s major religious organisations collectively hold billions in property assets, including CBD commercial buildings, pubs, aged care facilities, and farms (Stolz & Pierce, 2025). The Catholic Church owns 538 properties across Brisbane, including the heritage-listed Stock Exchange Hotel, 131 Edward Street, Brisbane City, QLD 4000, and a $51m site at 145 Charlotte Street, Brisbane City, QLD 4000. Other denominations like the Anglican, Uniting, Baptist, Lutheran and Hillsong churches also control significant commercial real estate portfolios across Brisbane and regional centres.
Commercial Insight: Religious organisations play a growing role in Queensland’s commercial landscape. Their ability to acquire and retain high-value CBD and suburban properties reflects not only long-term investment strategies but also competition with private sector players for core real estate assets.
Final Take
This week highlights growing demand-side confidence from both interstate investors and tenants, driven by infrastructure gains and robust economic outlooks. Yet supply constraints , particularly in industrial land and insurable locations , remain key headwinds. With institutional capital entrenching its stake in Brisbane and new mega-projects reshaping the skyline, the focus now shifts to ensuring policy and infrastructure keep pace with rapid growth.
References
- Herde, C. (2025, September 25). Picture perfect sale. The Courier-Mail.
- Herde, C. (2025, September 25). Locale and tenant yield healthy deal. The Courier-Mail.
- Mulveney, M. (2025, September 24). Pedestrians stream through Brisbane CBD bus tunnel ahead of official opening. The Courier-Mail (Online).
- O’Malley, B. (2025, September 19). Right up there with the best. The Courier-Mail.
- O’Malley, B. (2025, September 22). Thousands more in the firing line as new Brisbane flood maps released. The Courier-Mail.
- Stolz, G., & Pierce, J. (2025, September 21). A city pub, offices, mansions, farms and shops: Houses of the holy. The Courier-Mail.
- The Courier-Mail. (2025, September). Industrial land loss in Brissie. The Courier-Mail.
- The Courier-Mail. (2025, September). Inside Brisbane’s skyline: Who owns CBD towers. 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.
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