Brisbane Commercial & Industrial Property Market Review - March 2026
“Vacancy tightening and sustained demand position Brisbane as one of Australia’s strongest industrial
markets heading into 2026.”
Brisbane enters 2026 as one of Australia’s most balanced and tightly held industrial markets, supported by strong occupier demand, limited serviced land and a sharp improvement in absorption late in 2025.
Vacancy fell dramatically from around 5.2% to just under 3.9% in the final quarter of the year, marking the steepest quarterly tightening in roughly three years. The strongest gains came from the Southside and Western precincts, where demand in the 3,000–10,000 sqm range accelerated and quickly absorbed earlier supply-driven increases in availability.
Prime rents were largely stable through Q4 after several years of strong growth, with annual increases averaging around 3% to 4%. Submarkets with the tightest availability, particularly the Southside and Trade Coast, continued to outperform, supported by limited options for immediate occupation. Secondary rents followed a similar pattern, consolidating earlier gains as incentives stabilised.
Yields remained steady through late 2025. Prime yields held in the mid‑5% range, while secondary yields sat in the mid‑6% range, reflecting consistent depth of demand from both private and institutional capital. Pricing movements were minimal, signalling that the broader repricing cycle is well progressed and that confidence has returned to the market.
Outlook for 2026
Brisbane is positioned for another strong year. While a moderate uplift in speculative completions may create short‑term fluctuations in certain size cohorts, overall vacancy is expected to remain low due to sustained demand and limited new land supply. Rental growth is likely to continue at a steady pace, supported by population growth, infrastructure investment and the city’s increasing role as a core East Coast logistics hub. Yields are expected to remain stable, with the potential for mild compression if capital inflows strengthen as anticipated.
Phil Levesque, FAL Property Group