Brisbane CBD Office Market Q3 2023

Key Points:

• Leasing activity has remained strong in the face of economic uncertainty with prime offerings being highly sought after.
• The Brisbane CBD will experience a gap in supply with no new developments delivered until early 2025.
• Vacancy has improved markedly since the beginning of 2022, with total Brisbane CBD vacancy dropping to 11.6% in July 2023, from a peak of 15.4% in January 2022.
• Face rents have continued to grow in the CBD in the current inflationary environment. Over Q2 2023, CBD prime gross rents increased by 1.8% to $897/sqm (+5.0% y-o-y).
• Sales activity was subdued in Q2 2023, totalling $81m.
• Office prime yields softened 18bps q-o-q to 6.06%