Insights

Tightening Conditions, Rising Rents & Strategic Leasing Decisions

The Brisbane office market has kicked off the year with a clear shift in momentum. Business confidence has strengthened, enquiry levels are rising, and the underlying fundamentals are pointing to a market that is tightening faster than many anticipated.

We are currently tracking over 10,000sqm of active tenant requirements, with strong inspection activity across all size brackets. However, the dynamics differ depending on scale.

Smaller to mid-sized tenants are showing less resistance to rental increases, while occupiers above 1,000sqm are facing more challenging negotiations. This cohort is being impacted the most - larger footprints, longer lease terms, and consequently greater exposure to rising occupancy costs.

At the premium end of the market, the shift is even more pronounced.  A-grade assets above 1,000sqm are now pushing into the mid-to-high $800/sqm gross range, with forward deals into late 2026 and early 2027 approaching $900/sqm.

At the same time, we are seeing new benchmarks emerge. A recent 4,000sqm transaction at an upcoming new development achieved circa $1,200/sqm gross, setting a new precedent for fringe new-build product. This signals that the market is now aligning with the rental levels required to support new development feasibility - an important inflection point.

Overlaying this is a continued contraction in vacancy, which is expected to accelerate as Brisbane moves toward the 2032 Olympics. With increased demand tied to infrastructure, professional services, and project delivery, the competition for quality space will only intensify.

What This Means for Occupiers

1. Lease Term Strategy Matters More Than Ever
With vacancy tightening and rents rising, we are strongly advising tenants to secure longer lease terms that extend beyond 2032. Short-term thinking in a tightening market risks exposure to significant rental uplift and limited availability.

2. Be Proactive Without an Option Term
If your lease does not include an option, landlords are increasingly bringing tenancies to market earlier to capture rising rents. Tenants should be planning renewals or relocations well in advance to avoid being caught in a compressed decision window.

3. Act Early on Project-Driven Requirements
Sectors such as engineering and project delivery are experiencing strong demand. If you have upcoming project-based requirements, waiting and relying on short-term (3–12 month) leases is becoming less viable. Securing space early is critical in the current environment.

Additional Market Observations

• Incentives are tightening, trending closer to ~30%, which is beginning to influence tenant behaviour and advisory engagement.

Bottom Line

The Brisbane office market is entering a landlord-favourable phase, underpinned by tightening supply, rising rents, and strong forward demand linked to infrastructure and the Olympics.

For tenants, the strategy is clear: Plan earlier, secure longer, and act decisively.

For owners, the conditions are aligning to drive rental growth and reposition assets with confidence.

If you have an upcoming requirement or want to better understand your position in this shifting market, now is the time to engage.

Contact us for more information today.

Aegis Property Group has prepared this market analysis based on independently conducted research and data sourced from third parties believed to be reliable. This analysis is undertaken on a quarterly and half-yearly basis and reflects market conditions and insights available only at the time of publication. While every effort has been made to ensure accuracy, Aegis Property Group does not warrant or represent that the information is free from errors or omissions.

The information contained herein is general in nature and does not constitute financial, legal, or investment advice. To the maximum extent permitted by law, Aegis Property Group excludes all liability (including in negligence) for any loss or damage resulting from the use of or reliance on this report. No part of this analysis may be reproduced or distributed without express written permission.