Brisbane office vacancy diverges between CBD and Near City markets

The CBD absorbs space as Near City vacancy rises to 15% in Q1.

JLL says Brisbane’s office market continues to show a clear divergence between the CBD and Near City precincts, with occupier demand increasingly concentrated in the core CBD.

According to JLL, the Brisbane CBD recorded net absorption of 5,300 sqm, supported by sustained tenant demand. In contrast, the Near City market posted negative net absorption of 22,800 sqm, reflecting softer occupier conditions and shifting preferences toward central locations.

Headline vacancy in the CBD edged down slightly to 11.5%, while vacancy in the Near City market rose to 15.0%, underscoring the widening performance gap between the two areas.

On the investment side, JLL reported AUD151.7 million in transactions across six sales, evenly split between CBD and Near City assets. In the CBD, prime yields tightened by 12.5 basis points at the upper end, bringing the range to 6.00%–8.25% and a midpoint of 7.13%. In the Near City, yields remained unchanged at 7.00%–8.75%, with a midpoint of 7.88%.

The consultancy said rental growth continued across the market but showed signs of moderation. Aggregated prime gross effective rents reached AUD477 per sqm, representing a 10.5% year-on-year increase. However, JLL noted that the absence of near-term supply is increasingly shaping leasing dynamics, with tenants prioritising existing stock and favouring CBD locations.

Looking ahead, JLL expects market conditions to be defined by a lack of new supply across both the CBD and Near City until 2027, placing greater emphasis on absorption of existing space. Rental growth is expected to moderate following a period of strong increases.

The consultancy added that tenant demand is likely to remain skewed toward the CBD, supported by its locational advantages and concentration of prime-grade assets, while the Near City market is expected to continue adjusting to elevated vacancy levels.