Brisbane CBD records nearly 180,000sqm of new office space under construction

Four projects are now in the works.

According to a JLL report, in the Brisbane CBD, a total of 178,800 sqm is currently under construction, across four developments. Limited new supply in recent quarters has shifted the vacancy rate down to 9.9%.

“Near City office supply remains constrained, with only one small development (4,600 sqm) under construction. Several developments are seeking pre-commitment, prior to commencing construction. The vacancy rate has declined to 10.8% in Q2 2025,” the report said.

Here’s more from JLL:

Positive net absorption of 5,400 sqm recorded in Brisbane CBD. The prime net absorption in Q2 2025 was 6,300 sqm, while demand in the secondary market was marginally negative, around 900 sqm. Occupier activity was focused within the Golden Triangle.

Net absorption was negative 500 sqm overall in Brisbane’s Near City. Prime office accommodation was favoured, with positive net absorption of approximately 3,000 sqm, compared to a negative result of 3,600 sqm in the secondary market.

No transaction activity recorded in Brisbane CBD

Prime net effective rents increased 4.8% to AUD 374 per sqm p.a. in the Brisbane CBD and 3.8% in the Near City to AUD 255 per sqm p.a. on average.

The prime yield range in Brisbane CBD has softened 13 bps on the upper yield, to be 6.13% – 8.25%. Office yields in the near city have also softened 25 bps on the upper end, to reach 7.00% – 8.50%.

Outlook: 205 North Quay to reach practical completion in Q3 2025

One major office tower (205 North Quay) will enter supply in Q3 2025, with full pre-commitment to a government tenant. Some backfill will become available in the CBD as a result.

The Reserve Bank of Australia is expected to lower the cash rate further, over the duration of 2025 and this could stimulate investment activity in the Brisbane office market.