The global flight to quality has defined office markets worldwide, but is especially noticeable in Brisbane’s CBD, where premiums are rising across metrics.
Insight
12 February 2026
Flight to quality takes center stage in Brisbane CBD
Post-pandemic, the office market faced major challenges as widespread work-from-home mandates fundamentally changed how people worked, a shift that has proven difficult to reverse. This period created a disconnect between management and employees regarding the future of the workplace. A KPMG CEO survey revealed that 83% of executives are pushing for a full return to the office in the coming years. In contrast, the average Australian worker indicated a desire for flexibility, even willing to forego 4–8% of their annual salary to retain remote work options (Souza et al. 2023). These opposing views highlight the ongoing debate shaping the future of work in Australia’s office sector.
A clear outcome of recent years has been a global "flight to quality," a trend particularly evident in Brisbane’s constrained CBD market. As occupiers seek to attract workers back to the office, or at least into hybrid work models, demand for premium office space is increasing. A Stanford economist found that an aggregation of research suggests hybrid working models have a neutral impact on productivity, whereas fully remote arrangements showcase a 10% decline. This shows why organisations need premium, centrally located office space to boost performance and encourage collaboration, benefits that virtual environments struggle to replicate.
Premium office environments are proving essential for successful return-to-office strategies, combining well-equipped buildings with central locations. This is especially critical in Brisbane, where 76% of CBD workers depend on public transport, making prime office positioning a competitive advantage for attracting and retaining talent (Queensland Government). Additionally, Environmental, Social, and Governance (ESG) considerations are increasingly central to occupier decision-making. NABERS ratings have become critical, with a recent JLL report revealing that most large office occupiers (>5,000 sqm) in capital cities have net-zero targets, as high as 97% in Canberra.
Figure 1: Vacancy rates in Brisbane’s CBD
Source: JLL Research
Leasing data further underscores the divide between prime and secondary assets. JLL found that only 17 of the 136 occupier moves tracked between 2023 and 2025 in Brisbane's CBD went to secondary assets, representing just 28,000 sqm of the total 291,100 sqm in gross take-up.
This shows a widening gap between the demand for prime and secondary office spaces, reflected in vacancy rates by grade, most recently recorded at 4.6 percentage points (ppts).
Brisbane CBD’s limited supply intensifies this dynamic, with fewer options compared to other markets. Prime stock makes up just 59.8% of CBD office space, significantly lower than Sydney (-6.7 ppts) and Melbourne (-11.5 ppts). Looking ahead, this gap is likely to widen, with only 89,500 sqm of new prime space under construction in Brisbane by Q4 2028, compared to 176,600 sqm in Sydney and 143,000 sqm in Melbourne over a similar timeframe.
Figure 2: Rental premium growth in Brisbane CBD
Source: JLL Research
At the same time, the rental spread between prime and secondary assets has grown steadily, with Brisbane seeing a Compound Annual Growth Rate (CAGR) of 9.0% in the rental premium for prime space over Q1 2020–Q4 2025. Together, these trends make it clear that quality, sustainability and strong amenities are now non-negotiable priorities for occupiers choosing office spaces.