The leasing market remains at status quo, despite early signs of improving vacancy rates

• New stores from premium chocolatier Koko Black and international fast-food chain Wendy’s highlight continued leasing demand in the CBD, while the market awaits an entrant for the prime Queen St vacancy left by H&M.
• The rental market remains stable, with quarterly growth broadly in line with CPI.

Construction activity in South East Queensland is limited by elevated costs, with only one project completed in the quarter

• 5,000 sqm of additional retail floor space was added to the market in the quarter, this brings the total completions for the year 2025 to only 19,000 sqm.
• JLL is tracking nine projects that are “under construction” across sub-sectors, these are set to bring a further 67,000 sqm to market.

Transaction volumes in the quarter almost doubled those of the previous quarter

• Yields compressed across most South East Queensland sub-sectors in the quarter, with the regional sub-sector being the only exception. CBD, sub-regional and LFR each had 25 bps tightening, while neighbourhood retail saw a more modest 7 bps compression.
• Twenty-five transactions totalling $1.92 billion AUD were recorded, highlighted by two major regional deals: a further 25% stake in Chermside ($683 million AUD) and Logan Hyperdome ($679 million AUD).

Outlook: Rental growth to pick-up over the near-term

• More pronounced rental growth is expected as lower vacancy rates begin to be reflected in leasing deals.
• Supply outlook remains constrained due to high construction costs, maintaining investor interest as opportunities arise from limited new stock.