Office Market
FY2026 | Quarter 4
Brisbane CBD
Brisbane CBD total office vacancy as of June 2026 sits at 8.04%, down from 9.05% in December 2025 and significantly below the cycle peak of approximately 16.0% in September 2021. The improvement has been driven by continued leasing activity across the market, with Premium Grade vacancy reducing to 6.26% and A Grade vacancy reducing to 5.42%. A-/B+ Grade vacancy has remained relatively stable at 6.71%, while B Grade vacancy increased slightly to 14.45% up 0.14% from February, reflecting ongoing tenant preference for higher-quality accommodation.
Rental growth has continued throughout the first half of 2026, particularly within Premium Grade assets, where average rents have increased approximately 50% since March 2020. Landlords continue to capitalise on strong demand for quality office space, with a lack of genuine Premium and high-quality A Grade alternatives placing upward pressure on rents. Recent leasing transactions across the CBD have continued to establish new rental benchmarks, particularly for fitted and refurbished accommodation.
Incentives remain elevated, however tenant demand continues to be heavily weighted towards fitted accommodation, with occupiers showing a strong preference for move-in ready space. This trend continues to support well-presented assets with existing fit outs and limits demand for unfitted accommodation. While Brisbane’s office market appears to be moving towards a more balanced phase following the strong leasing conditions experienced between 2021 and 2025, market fundamentals remain favourable and further rental growth is anticipated, particularly within Premium Grade assets.
(Caden Vacancy Tracker February and June 2026).
Brisbane Fringe
Total Brisbane Fringe vacancy increased from 10.5% in July 2025 to 11.4% in March 2026, reflecting a modest softening following several years of strong performance. This coincided with six-month net absorption of approximately 15,824 sqm, as some occupiers consolidated or repositioned within established fringe precincts. Despite this, vacancy remains relatively contained, supported by ongoing demand for higher-quality accommodation and a lack of new supply.
Milton vacancy has softened to approximately 14.1%, remaining below the long-term average of 15-20% and broadly comparable to Brisbane CBD secondary and B-grade vacancy levels. The precinct continues to attract value-driven tenants due to its affordability, connectivity and access to quality accommodation outside the CBD.
Fringe office stock continues to contract as older assets are withdrawn or repurposed, rather than replenished through new development. Since H1 2024, including the withdrawal of 30 Little Cribb Street, Milton for hotel conversion, total Fringe stock has declined by approximately 1.2%. With no meaningful supply pipeline anticipated, stock levels are expected to remain broadly stable or decline further. Prime rents in Milton increased by 5.2% and secondary rents by 8.1% over the past 12 months, while incentives have begun to tighten and are expected to gradually reduce further over coming years (Cushman and Wakefield – Marketbeat Brisbane Fringe Office, 2026).
Notable sales within the Milton office market include:
- 29 Finchley Street, Milton sold in April 2026 for $5.36 million (VP)
- 16 Marie Street, Milton sold in November 2025 for $19.7 million (8.9% Yield)
- 339 Coronation Drive, Milton sold in October 2025 for $80 million (9.13% Yield)
Mackay
The Mackay office market has remained stable in terms of investment yields throughout 2026. Rental growth has continued steadily, with office rentals expected to increase by approximately 5% in the near term before stabilising. This growth is being supported by ongoing demand from both owner-occupiers and investors, with yields expected to remain stable throughout the year, underpinning confidence in the market (HTW MIR April 2026).
Notable sales within regional Queensland include:
- 19-49 Stanley Street, Townsville sold in June 2026 for $13.75 million (9.04% yield)
- 110 Wood Street, Mackay sold in December 2025 for $8.08 million (8.25% yield)
- 36 Wood Street, Mackay sold in February 2025 for $4.2 million (7.97% yield)
