The Brisbane CBD office market continued to outperform other capitals in Q3 2025, supported by strong leasing activity and steady economic fundamentals. Net absorption remained positive, prime rents grew further, and investment activity stayed cautiously active.
Vacancy steady, absorption strong
Brisbane’s headline vacancy rate held at 10.7% this quarter, reflecting a relatively tight balance between supply and demand. Net absorption reached approximately 27,500 sqm, one of the strongest results nationally.
The limited upcoming pipeline, led by 360 Queen Street due late 2025, suggests prime availability will remain constrained in the near term. Demand continues to favour modern, energy-efficient buildings with strong tenant amenities.
New supply and pre-commitments
Recent completions and pre-lease activity shaped the quarter’s performance. 205 North Quay advanced toward completion with significant government pre-commitment, likely to create some backfill space once occupied.
The scarcity of new premium-grade stock maintained competitive leasing conditions across the CBD.
Leasing demand and enquiry
Enquiry volumes lifted again in Q3, with larger tenants consolidating into high-quality, contiguous floors. CBRE data indicated a steady rise in the size and quality of briefs, dominated by government, engineering, and financial services sectors.
This trend reinforces Brisbane’s position as a “flight to quality” market, where occupiers prioritise location, amenity, and sustainability over expansion.
Rents and incentives
Prime effective rents rose 2.9% quarter-on-quarter and 9.5% year-on-year, reflecting limited supply and sustained occupier competition.
Incentives for premium space remain steady around the high-30% range. Secondary assets continue to face pressure, with effective rents declining and incentives often exceeding 45% as landlords compete to attract tenants.
Investment market
Investor interest remained selective but active. Domestic and offshore capital targeted well-leased, future-proofed assets with stable income.
Several transactions across the CBD, Fortitude Valley, and near-city precincts reflected ongoing appetite for core and core-plus opportunities. Secondary assets attracted interest only where refurbishment or repositioning potential was clear.
Market outlook
Brisbane’s office market is expected to remain among Australia’s most balanced through 2026. Strong local employment, improving weekday attendance, and limited new completions will continue to support demand for high-quality buildings.
Vacancy is likely to stay near current levels, while rents in prime-grade assets should edge higher. Investors and occupiers alike are focusing on buildings that combine sustainability, amenity, and long-term income stability.
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