Quarterly Report · Q1 2026
Q1 analysis of leasing activity, sales transactions and investment performance from the Sunshine Coast in the north to the southern end of the Gold Coast in the south across the office & industrial markets.
South East Queensland Market Snapshot · Q1 2026
Office Market — Sales Activity & Investment Performance
State Comparison
Q1 2026 Office Sales Activity — State Comparison
| State / Region | Deal Count | Total Sales Volume | Median Price /m² | YoY Price /m² Change | Avg Yield |
|---|---|---|---|---|---|
| Greater SEQ | 149 | $649,354,893 | $5,934 | 4.09% | 6.90% |
| Greater Perth | 105 | $109,683,724 | $4,270 | -9.23% | 5.60% |
| Greater Sydney | 151 | $950,362,378 | $9,553 | 3.41% | 9.00% |
| Greater Adelaide | 76 | $169,106,988 | $5,527 | 2.79% | 6.70% |
| Greater Melbourne | 171 | $384,853,618 | $5,173 | -12.81% | 7.50% |
Strata assets continued to account for the majority of office sales across South East Queensland in 2026, making up nearly 70.0% of all transactions. Despite fewer sales, freehold properties generated more than 80.0% of total sales volume, reflecting investor demand for larger, higher-value assets. Median sale prices increased 4.09% year over year, while freehold properties recorded a higher average yield (7.6%) than strata assets (6.29%), highlighting the different characteristics of each investment type.
Sales by Structure Type
Q1 2026 Office Sales Activity by Structure Type
Strata offices accounted for roughly two thirds of all office transactions in Q1 2026, reflecting continued demand for smaller investment opportunities. Despite fewer sales, freehold assets generated more than $557 million in sales turnover and recorded the higher average yield of 7.6%.
Economic Performance
South East Queensland Economic Backdrop, Q1 2026
Higher workforce participation contributed to a modest increase in unemployment as more people entered the labour market in search of employment, outpacing short-term job creation.
International tourism continued to strengthen, with 2.4 million visitors contributing a record $8.2 billion to Queensland's economy in the year to March 2026.
South East Queensland's economic momentum is expected to continue, with GSP forecast to grow by 2.5% in 2025–26 after leading all states with 2.2% growth in 2024–25.
Major infrastructure projects, including Brisbane 2032 Olympic preparations and transport upgrades, continued to support construction activity, employment and business confidence.
* Source: Queensland Government Statistician's Office (QGSO)
Arealytics · Q1 2026 Queensland Office Market Report
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South East Queensland Market Snapshot · Q1 2026
Office Market — Lease Activity & Rate Trends
Lease Rate Trends
QLD Office Lease Rate Per Square Metre Trends
Median Commencing Rent
$650 /m²
Median commencing rents reached $650 per square metre in 2025, reflecting continued demand for well-located office space.
Average commencing rents reached $650 per sqm in Q1 2026, representing a 21.3% increase over the past year.
This highlights the differing roles each asset type plays within the market, with strata providing greater transaction activity and freehold assets offering larger-scale investment opportunities.
Lease Structure
Most Common Lease Rate Types and Escalation in Q1 2026 Office Leases
Most Common Lease Rate Types
Percentage of Total
The market continued to favour fixed rental review mechanisms over CPI-linked structures, providing greater certainty for both landlords and tenants. Fixed annual increases were most commonly negotiated at rates between 3.0% and 4.0%, reinforcing the prevalence of stable, predetermined rental growth provisions.
Top Escalation Rates
Percent of Total
Top Lease Terms
Percent of Total
Arealytics · Q1 2026 Queensland Office Market Report
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South East Queensland Market Snapshot · Q1 2026
Office Market — Suburb Pricing Summary
Suburb Pricing
Pricing Summary for Top QLD Office Suburbs by Transaction Count
Office market performance varied across South East Queensland during Q1 2026, with established commercial precincts continuing to attract the strongest leasing demand and premium rental outcomes. While Brisbane City remained the most active leasing market, suburbs including Fortitude Valley and Newstead continued to command higher commencing rents, reflecting sustained occupier demand for well-located, higher-quality office accommodation. Investment activity also remained diverse across the region, with sale rates varying significantly between suburbs and asset types, reinforcing the importance of location, building quality and investment profile in pricing outcomes.
Arealytics · Q1 2026 Queensland Office Market Report
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South East Queensland Market Snapshot · Q1 2026
Industrial Market — Sales Activity & Investment Performance
State Comparison
Q1 2026 Industrial Sales Activity — State Comparison
| State | Deal Count | Total Sales Volume | Median Price /m² | YoY Price /m² Change | Avg Yield |
|---|---|---|---|---|---|
| Greater SEQ | 435 | $924,487,913 | $4,348 | 3.7% | 5.8% |
| Greater Melbourne | 538 | $1,252,421,470 | $3,431 | 3.9% | 4.8% |
| Greater Adelaide | 118 | $401,399,121 | $3,132 | 1.1% | 5.9% |
| Greater Perth | 169 | $363,574,371 | $3,429 | 12.9% | 5.2% |
| Greater Sydney | 269 | $920,400,001 | $6,026 | 2.8% | 6.6% |
South East Queensland recorded the second-highest industrial sales volume nationally, with $924.5 million in transactions during Q1 2026. Median industrial sales in SEQ increased 3.7% year-over-year, reflecting continued strength in industrial asset values across the region. Australia's five largest industrial markets recorded a combined 1,529 industrial property transactions during Q1 2026, demonstrating continued depth and liquidity across the industrial investment sector.
Sales by Structure Type
Q1 2026 Industrial Sales Activity by Structure Type
The Queensland industrial investment market recorded a strong first quarter of 2026, with strata assets accounting for more than 77% of all sales. Despite fewer transactions, freehold properties generated the highest sales turnover, reaching $547.7 million, reflecting continued demand for larger industrial assets. Average yields remained closely aligned across both asset types, at 5.6% for freehold properties and 5.8% for strata assets. Over the 12 months to Q1 2026, median sale rates increased across both market segments, with freehold properties recording annual growth of 18.1%, while strata assets increased by 8.1%.
Historical Activity
SEQ Industrial Sales Activity by Quarter
Arealytics · Q1 2026 Queensland Industrial Market Report
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South East Queensland Market Snapshot · Q1 2026
Industrial Market — Lease Activity & Rate Trends
Lease Rate Trends
QLD Industrial Lease Rate Per Square Metre Trends
Premium industrial assets continued to command higher commencing rents, with upper-quartile rates reaching $241 per square metre, up 3.3% year over year.
Median commencing rents softened during the quarter as leasing activity expanded beyond premium industrial assets into more affordable properties.
Lease Structure
Most Common Lease Rate Types and Escalation in Q1 2026 Industrial Leases
Queensland industrial leases were most commonly structured around fixed rental reviews, providing landlords and tenants with greater certainty around future rent movements. Annual increases of 4.0% remained the benchmark escalation rate, reinforcing expectations for consistent income growth across the market.
Most Common Lease Rate Types
Percentage of Total
Top Escalation Rates
Percent of Total
Top Lease Terms
Percent of Total
Arealytics · Q1 2026 Queensland Industrial Market Report
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South East Queensland Market Snapshot · Q1 2026
Industrial Market — Suburb Pricing Summary
Structure-Type Pricing Trend
Average Price per m² by Structure Type
Industrial · quarterly · Q1 2023 — Q1 2026
Suburb Pricing
Pricing Summary for Top 10 SEQ Suburbs by Transaction Count
The SEQ industrial market continued to perform strongly across a range of established precincts during Q1 2026. Burleigh Heads remained the region's busiest leasing market, Southport recorded the highest upper-quartile commencing lease rate, and Coolum Beach led all suburbs for sales activity, highlighting the depth of the region's industrial market.
Arealytics · Q1 2026 Queensland Industrial Market Report
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Important Notice
This report has been prepared by Empirical CRE Pty Ltd ("Arealytics") in partnership with Real Estate Institute of Queensland ("REIQ") for general information purposes only. It presents a snapshot of South East Queensland office and industrial market activity for the first quarter of 2026.
The information contained in this report is derived from a range of sources, including publicly available records, third-party data providers and Arealytics' own research. While all reasonable care has been taken in its preparation, Arealytics makes no representation or warranty, express or implied, as to the accuracy, completeness or currency of the information, and accepts no liability for any loss or damage arising from reliance upon it.
The figures presented reflect market conditions as at the date of publication and are subject to revision as further data becomes available. Past performance is not a reliable indicator of future performance.
Nothing in this report constitutes financial, investment, taxation or legal advice, and it should not be relied upon as such. Recipients should obtain independent professional advice before making any decision based on its contents.
The contents of this report remain the intellectual property of Arealytics and intended solely for the named recipient which has requested a copy. It may not be reproduced, distributed or referenced, in whole or in part, without reference to Arealytics.
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