Brisbane industrial completions rise as speculative development eases

Completions increased 34.9% in Q1.

Brisbane's industrial market recorded a strong start to 2026 as occupier demand carried over from the previous quarter, driving elevated leasing activity and above-average take-up levels, according to JLL.

Gross take-up increased 70.7% quarter-on-quarter, with 23 transactions completed during the first quarter compared with 15 deals in the previous three months.

JLL said the result reflected occupier requirements that extended into the start of the year, resulting in a strong volume of signed transactions by historical standards.

Supply completions also increased during the quarter, rising 34.9% from the previous quarter and exceeding long-term averages. New deliveries were concentrated in the Southern precinct.

Developers continued to favour pre-committed projects over speculative construction, with 82.9% of newly completed space absorbed upon completion.

Prime net rents in the Southern precinct averaged AUD164 per sq m per annum, increasing 0.5% quarter-on-quarter and 2.4% year-on-year.

Investment yields remained unchanged at between 5.0% and 6.0%, with a midpoint of 5.5%, representing a 12.5 basis point tightening compared with a year earlier.

Looking ahead, JLL expects the limited development pipeline to reduce the risk of oversupply and potentially create shortages of new prime stock. While leasing activity may moderate amid economic uncertainty, rental growth is expected to continue over the medium term, albeit at a slower pace.