The Brisbane CBD office market closed 2025 with solid signs of robust occupier demand and healthy net absorption, even as vacancy remained slightly elevated relative to Sydney and some regional markets. Strong leasing activity, limited new supply, and continued flight-to-quality demand supported rental growth and investor interest through the year.
Overall vacancy elevated but demand remains solid
Brisbane CBD’s overall vacancy rate held around 10.6–10.7% through late 2025, reflecting both steady demand and ongoing absorption of available space. This vacancy level is modestly elevated compared with Sydney or Adelaide but remains below historical peaks seen in some other Australian capital city markets.([turn1search7]; [turn1search3])
Demand in the Brisbane CBD remained robust, with positive net absorption reflected across 2025, particularly concentrated in the latter part of the year. According to JLL, the market recorded approximately 24,800 sqm of net absorption in Q3 2025, driven largely by tenants larger than 1,000 sqm, highlighting continued appetite for quality office accommodation.([turn1search7])
Strong leasing activity and tenant preferences
Leasing activity in Q4 built on earlier momentum, with larger corporate and government tenants driving demand for premium and A-grade space. The trend toward flight to quality was evident as tenants favoured modern office stock with superior amenity and sustainability features.
While secondary stock continued to compete for occupiers with larger incentive packages, leasing velocity in core buildings helped underpin positive absorption figures. This combination of tenant centralisation and targeted demand contributed to ongoing take-up even as some smaller tenants remained cautious.
Rental trends show positive growth
Rental conditions in the Brisbane CBD continued to improve, albeit at a measured pace. Prime net effective rents and incentives reflected this dynamic:
- Prime net effective rents rose modestly, supported by demand in higher-quality buildings, with JLL reporting quarter-on-quarter increases leading to double-digit year-on-year growth in some metrics.([turn1search7])
- Incentives in the CBD remained competitive, particularly for smaller tenants, but landlords of premium and well-located assets were able to maintain rental discipline.
Although data across specific rent bands lagged direct Q4 releases for Brisbane, the broader trend aligns with shown quarterly increases and continued tightening of incentives relative to earlier in the year.
Limited new supply and future pipeline
Brisbane’s office development pipeline remained constrained relative to demand, particularly in the CBD. Only a handful of major projects were underway, with several under construction but with elevated pre-commitment rates. This limited forward supply has helped support leasing outcomes and pricing stability.
Knight Frank data tracking mid-2025 noted that total vacancy had increased slightly during the year (to around 10.7% by July 2025), in part due to new completions earlier in the year, but that the broader development pipeline was limited relative to historical averages.([turn1search3])
Investment activity steady amid broader economic context
Investor interest in Brisbane office assets remained focused on well-located properties with strong tenant covenants. While transaction volumes in Brisbane were lower compared with Sydney, the stability of yields and positive rental prospects continued to underpin confidence among select domestic and offshore buyers.
Prime office yields in Brisbane continued to exhibit relative resilience compared with some other markets, reflecting stable occupier income and attractive risk-adjusted return profiles.
Outlook — momentum sustained into 2026
Looking ahead, the Brisbane CBD office market appears poised for continued occupation growth and pricing stability, supported by strong tenant demand for quality space and a limited forward supply pipeline. Vacancy is expected to remain elevated in the short term as new completions are absorbed, but net absorption is likely to stay positive if tenant centralisation and quality preferences persist.
Investors are likely to remain selective, focusing on assets with established tenant profiles and limited near-term leasing risk. Meanwhile, broader economic conditions — including ongoing population growth, infrastructure investment, and business expansion in Queensland — should provide structural support to office demand through 2026 and beyond.
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