Brisbane CBD net absorption reached 26,200 sq.m. year to date as limited new supply supported rental growth.
04 August 2026
Insight
04 August 2026
Brisbane Office Market Dynamics Q2 2026
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Authors
Laszlo Yurisich
Key Brisbane office market trends:
- Leasing activity in the Brisbane CBD accelerated in Q2 2026, with demand balanced across both prime and secondary stock.
- Tightening vacancy across prime and secondary stock and a small supply pipeline is supporting continued rental growth.
- Investment activity is anticipated to pick up in the second half of the year as deals finalise.
What is the Brisbane office vacancy rate in Q2 2026?
Leasing activity in the Brisbane CBD office market gathered pace in Q2 2026, with net absorption reaching 21,000 sq.m. for the quarter, bringing the year-to-date total to 26,200 sq.m. This result was balanced between positive results in prime and secondary NA, showcasing a spillover into higher quality B-grade stock as prime availabilities become scarcer. Prime vacancy stood at 7.7%, while secondary vacancy was 14.9%, bringing the overall vacancy rate to 10.6%.
Brisbane office supply pipeline and rental growth
Total transactions for the quarter reached AUD 48.1 million across one deal. Prime gross effective rents rose to AUD 574 p.sq.m. p.a., representing a year-on-year increase of 9.8%. Prime yields ranged from 6.00% to 8.25%, with a midpoint of 7.13%, while secondary yields ranged from 7.75% to 8.75%, with a midpoint of 8.25%.
No new supply was delivered in Q2 2026, and the next completion is set for Q1 of 2027.
What is the outlook for the Brisbane office market?
In the near-term, market conditions are expected to be underpinned by sustained tenant demand and limited new supply, which are likely to support further tightening in vacancy rates and continued rental growth, albeit at a more moderate pace than recent years. Prime grade space is anticipated to experience stronger leasing activity, driven by tenant preference for high-quality assets. However, as prime CBD stock tightens further, a continuation of spillover demand is expected into higher quality B-grade stock.
Numerous assets are expected to trade over the latter half of the year and support strong investment volumes. The yield compression cycle has now been pushed back further to 2028.