The Brisbane CBD commercial real estate (CRE) market has experienced a phase of relative weakness since the GFC, but an improving economic outlook and a wave of major development and infrastructure projects across Brisbane’s CBD and inner suburbs promises to drive the city’s economic growth over the coming decade creating employment, tourism and CRE opportunities.
- Seven major projects totalling $12.4bn, with five of the projects already approved and under construction.
- The Greater Brisbane economy is forecast to increase by 16% in real terms over the next five years. At the industry sector level, four of the top five industry sectors are forecast to show stronger growth, especially for IMT and Professional Services.
- Over the next decade in excess of 65,000 jobs are forecast to be created in Brisbane CBD and Fringe markets.
- International tourist visitor nights are forecast to increase by over 70% in the next decade, leading to over 105 million visitor nights in 2026-27.
COMMERCIAL REAL ESTATE OPPORTUNITIES:
- Increased demand for office space, with a near-term focus on engineering and related companies. This could drive demand for larger floorplate buildings that have been required by these professions as well as an increased need for coworking options, rather than traditional project space.
- Opportunity for retail to expand beyond the Queen Street Mall core with increased foot traffic along Mary and/or Charlotte Streets and in the vicinity of the proposed Albert Street station.
- Potential redevelopment and repositioning of secondary grade office assets along Mary, Charlotte and George Streets.
- Expansion of mixed use development to more suburbs, especially along proposed transit routes. Buranda, Kelvin Grove and Greenslopes are areas with high potential.
BRISBANE’S NEXT DAY
Queensland is known for being beautiful one day and perfect the next. However, Brisbane’s commercial real estate market has experienced some stormy weather since the GFC epitomised by office vacancy rates rising from near zero in 2007 to over 16% in 2016 and effective rents currently 45% below their peak.
In 2018 and beyond a wave of major development and infrastructure projects promise to drive economic growth and provide new commercial real estate (CRE) opportunities. In two recent reports1 Cushman & Wakefield considered the construction of transport infrastructure in Brisbane’s industrial precincts and its impact on the sector. Here we focus on major projects in the CBD and inner suburbs and their impact on the office, retail and mixed-use sectors.
Proposed development and infrastructure projects targeting Brisbane CBD over the next 10 years are valued at over $12.4bn; part of over $20bn in projects across the city. Together they will help deliver the Council’s vision of establishing Brisbane as a “new world city”.
Read Cushman & Wakefield’s full research here.