Brisbane Commercial & Industrial Property Market Review - August 2025
“Investment confidence is rebounding, with nearly $1 billion in industrial sales transacted in the first half of 2025.”
Q2 has seen stabilisation in Brisbane’s industrial market, underpinned by stronger economic conditions and improving investor sentiment.
Queensland’s economy continues to outperform, with GDP forecast to grow 2.1% in 2025 and 2.7% in 2026. Inflation is back within target and low unemployment (4.1%) is supporting both occupier demand and investor confidence. Interest rate cuts in May further improved borrowing conditions.
Development activity has moderated, with approximately 520,000 sqm due for delivery in 2025—about half speculative. The southside remains Brisbane’s most active corridor, capturing nearly half of all future supply, though pre-commitments are limiting vacancy risks. Rental growth has eased but remains positive, with prime rents averaging $161/sqm and secondary at $140/sqm on the southside. Incentives have edged higher, reflecting new supply, while mid-sized facilities (3,000–10,000 sqm) still a balanced market and the sub-3,000sqm really driving demand.
Vacancy rates lifted slightly, with the southside highest at 6.7%, largely due to new large-format completions, though leasing activity in smaller formats is strong. Investment confidence is rebounding, with prime yields compressing to 5.8% on the southside and nearly $1 billion in sales transacted in H1 2025. Land values remain steady at $580/sqm on average, supported by robust occupier and developer demand.
John Andrew, FAL Property Group