Brisbane CBD prime office rents up 3.6% in Q1

Rents in the Near City rose faster at 4.3%.

According to a JLL report, prime net effective rents increased 3.6% to an average of AUD 357 per sqm in the Brisbane CBD and 4.3% in the Near City to AUD 246. Average prime incentives were recorded at 39.5% in the CBD and 41.0% in the Near City.

“The prime yield range was maintained at 6.00% to 8.25% in the Brisbane CBD, the midpoint has softened 75 bps year-on-year to 7.13%. Prime Near City yields were unchanged at 6.75% to 8.50%, the midpoint softened 50 bps year-on-year,” the repor added.

Here’s more from JLL:

Negative net absorption of 7,500 sqm was recorded in the Brisbane CBD. The prime net absorption in Q1 2025 was positive 300 sqm, while the secondary market declined -7,900 sqm. Over the last 12 months, leasing demand in the Brisbane CBD was positive by 14,400 sqm.

Net absorption was positive 1,900 sqm in the Brisbane Near City. Tenants continued with flight to quality, evidenced by 11,400 sqm of net absorption in the prime market. Whereas, negative net absorption of 9,500 sqm was recorded for secondary grade stock.

No new office completions in the Brisbane Office market

In the Brisbane CBD, one office project has commenced construction at 450 Queen Street. The development is a refurbishment of an existing office tower and is expected to complete in late 2026. The headline vacancy rate in Brisbane CBD was 10.2%, up 0.3% in Q1 2025.

A small office development (4,600 sqm) has commenced construction in Fortitude Valley, in the Near City. The headline vacancy rate has reduced to 10.9%, due to a lack of new supply and positive leasing momentum. The secondary grade vacancy rate has increased to 13.5%.

Outlook: A fully pre-committed office tower is on track to complete in 2025

Two new office developments are forecast to complete in Brisbane CBD over the next 12 months, while pre-commitments rates are elevated, some backfill availability could influence rental growth and vacancy rate.

Investors may be cautious over the near term, as economic conditions are impacting capital market activity in Brisbane. A further decrease in the cash rate could stimulate office investment.