Occupier demand patterns continued to diverge between the CBD and Near City markets, highlighting a bifurcated leasing environment where centralisation persists

• Brisbane’s office market continues to show signs of bifurcation between the CBD and Near City. The CBD recorded sustained tenant demand, with net absorption of 5,300 sq.m., while the Near City experienced net absorption of −22,800 sq.m., reflecting divergent occupier preferences across the two markets.
• Headline vacancy across the CBD moved marginally lower to 11.5%, while vacancy in the Near City market increased to 15.0%, underscoring softer conditions outside the core CBD.

Investment activity continued in the CBD and Near City, with pricing indicators showing overall stability, selective yield tightening in the core, and an extended timeline for broader yield compression

• Brisbane recorded AUD 151.7 million in transactions across six sales, equally balanced between the CBD and Near City. In the CBD, prime yields tightened over the quarter by 12.5 bps at the upper end, bringing the range to 6.00%-8.25%, or a midpoint of 7.13%.
• In the Near City, the range was unchanged at 7.00%-8.75%, or a midpoint of 7.88%.

Rental dynamics continued to shift as growth momentum started to moderate, while the absence of near-term supply shifted focus toward absorption of existing stock and reinforced tenant preference for CBD locations

• Rental growth in Brisbane continued, with aggregated prime gross effective rent recorded at AUD 477 per sqm, a 10.5% year-on-year rise.

Outlook: A potential addition to the supply pipeline to come

• In the near-term, market conditions are expected to be shaped by the absence of new supply additions until 2027 in both the CBD and Near City markets, placing greater emphasis on how existing stock is absorbed. Rental growth is forecast to moderate, after a period of substantial increases.
• Tenant demand is expected to remain skewed toward the CBD, supported by its locational advantages and concentration of prime grade space, while the Near City market is likely to continue adjusting to higher vacancy levels.