Leasing activity has stabilises in Q1 2025

• Occupier demand in the Brisbane market has decreased, comparative to Q4 2024. However, activity in Q1 2025 has improved year-on-year. A total of 113,000 sqm has been absorbed, below the 10-year historic average of 154,900 sqm.
• Tenants within the transport, postal and warehousing industry were most activity during the quarter, taking 47,300 sqm. The largest transaction was a pre-lease to United Rentals (21,400 sqm) in Brisbane’s Trade Coast precinct.

New supply increases, vacancy remains broadly stable

• New completions reached 134,200 sqm, up on the previous quarter and above the 10-year historic average of 95,500 sqm. The pre-commitment rate at completion was 60% and new stock was mostly built in the Southern precinct (72,600 sqm) followed by Trade Coast (61,600 sqm).
• Brisbane’s industrial vacancy rate has marginally reduced in Q1 2025 to 3.9%. A total of 51,400 sqm of speculative developments have reached completion, without securing pre-commitment. However, stable leasing demand has prevented the vacancy rate from rising.

Yield tightening is recorded in Q1 2025

• Net face rents remained highest in the Trade Coast at AUD 198 per sqm p.a. The Southern precinct outperformed other precincts with quarterly rent growth of 2.7%, rental increases were particularly strong in smaller sized stock (circa 3,000 sqm).
• Investment volumes in Q1 2025 reached AUD 405.6 million, above the 10-year quarterly volume of AUD 268.0 million. A portfolio transaction in Yatala, located in Brisbane’s Southern precinct marked the largest transaction in terms of value.

Outlook: New construction likely to moderate, in response to reduced pre-leasing activity

• Steady rental growth in anticipated across all precincts in the Brisbane market.
• Further yield tightening is likely by the end of 2025, as investor interest intensifies.