Knight Frank’s Brisbane CBD State of the Market Q2 2026 report found prime office rents rose 7.3 per cent in the 12 months to June 2026 - well above the market's 10-year average of 4.5 per cent - and are tipped to rise by a further 5.7 per cent a year, on average, through to 2031.
We spoke to Knight Frank Partner, Research & Consulting, Queensland, Jennelle Wilson about what’s fuelling the rise and what it means for investors and developers.
Limited Supply Creates Rental Upside
Brisbane’s new office supply pipeline is running thin, supporting a stronger outlook for existing assets. The report found that no new office developments will be completed this year. The next stock to hit the market will be a pair of refurbishments - 450 Queen Street and 150 Charlotte Street - arriving in 2027. Waterfront North follows in late 2028, and after that, nothing new lands until 2030 to 2032. With almost no supply in the pipeline, the report forecasts the CBD vacancy rate will drop below 10 per cent by 2028. Ms Wilson said the lack of new development had created a more competitive leasing environment for high-quality assets.“Businesses that might previously have had a broad range of relocation options are finding fewer vacancies available in prime buildings, which is placing upward pressure on rents,” Ms Wilson said.
At the same time, the limited development pipeline for the next three years is giving occupiers less flexibility around timing. “Many businesses are needing to plan their accommodation strategies earlier than they have in the past because of uncertainty surrounding potential availability of space in 2-3 years’ time,” she said.
Law Firms Snap up Space
One sector is leasing more office space in Brisbane’s CBD than any other: law firms. Professional services accounted for 31 per cent of leasing transactions over the past 18 months, according to the report, with legal firms leading the pack ahead of architects and engineers. Government made up a further 15 per cent of activity, while accounting, management and consulting firms also featured strongly. "Professional services firms, particularly law firms, tend to place a high value on quality office accommodation because it plays an important role in attracting talent, supporting client engagement and reinforcing brand positioning,” Ms Wilson said. “As a result, these businesses are often among the first to target premium workplace environments and pre-commitment opportunities when aligned with their lease terms.” Ms Wilson said strong levels of infrastructure, development and investment activity were also generating work across legal, engineering, consulting and advisory sectors.“That flow-on effect is supporting expansion and accommodation demand from professional services businesses across the CBD,” she said.
Tenants Opt to Stay Put
Ms Wilson said lease renewals had become a key market trend as businesses weighed relocation costs, including new fit-out expenses, against staying in functional existing premises.
“If the building and size of tenancy is meeting the company’s needs plus the existing fit-out is functional or can be easily refreshed, this is seen as a lower risk alternative, giving certainty of occupation coming into a tighter period in the market,” she said. There is also a growing recognition that suitable alternatives may not be readily available in the location, quality or timeframe businesses require. “With vacancy expected to tighten further, some occupiers are choosing to secure certainty now through renewals while they monitor future opportunities that may emerge later in the decade,” she said.
