Demand in the CBD consistent, reflected in strong net absorption figures

• The Brisbane CBD achieved net absorption of 16,900 sqm over the quarter, supported by 21 tenant moves (>1,000 sqm).
• Brisbane’s Near City recorded negative net absorption of -42,500 sqm, with centralisation accounting for approximately 25% of this contraction.

One project reached completion in the CBD

• One project completion was recorded in Brisbane’s CBD, with the completion of 360 Queen delivering 45,000 sqm to 
  the CBD market. No project completions were recorded in the Near City. Headline vacancy increased to 11.5% in the CBD and 13.3% in the Near City.
• JLL is currently tracking two projects under construction in the Brisbane CBD (89,500 sqm), and a further one in the Near 
  City (4,600 sqm).

Brisbane records sustained and elevated rental growth

• CBD prime net effective rents (PNER) rose 4.7% quarter-on-quarter to AUD 398 per sqm p.a. (15.7% year-on-year), as Near 
  City PNER rose 4.6% quarter-on-quarter to AUD 268 per sqm p.a. (13.6% year-on-year).
• Prime CBD yields remained stable in a range of 6.13%-8.25%. Yields in Brisbane’s Near City remained stable at both ends in a range of 7.00%-8.75%.

Outlook: Flight to quality expected to remain the main demand driver

• Demand is expected to remain elevated in Brisbane’s CBD over the near-term, driven by an increasing demand for high-quality space and constrained supply. Centralisation and flight to quality are anticipated to remain as the main themes around absorption.
• Brisbane’s strong macro fundamentals are expected to continue driving its value, attracting investment from both local and overseas capital.