Insights

It’s no secret that the cost of living has risen… but what about the cost of running your business?

The housing market has recorded annual growth of 7.3%, with Queensland now the second most expensive capital city for housing. But it’s not just residential property feeling the pressure; the office market is also tightening.

Brisbane’s fringe vacancy rates have dropped significantly, falling from ~35% during COVID-19 to around ~11% today. With the PCA’s absorption rate pointing to further reductions, vacancy is forecast to reach as low as 6% before new supply comes online in 2028. We’ve broken down rental growth across Brisbane’s fringe precincts since January 2025, and the key factors driving these increases.

15 Astor Terrace, Spring Hill

Spring Hill

As Brisbane’s oldest fringe market, Spring Hill has smaller-sized floor plates compared to its newer competitors. Over the years, this precinct has become a haven for smaller tenants <500 sqm as Owners have subdivided those floor plates to remain competitive in the market. Located directly north of the CBD, it was one of the first areas to be developed beyond the city centre and quickly became a natural overflow for businesses priced out of the CBD. While rent growth was expected, the scale has been surprising, with rents rising by 8% since the start of the year.

100 McLachlan Street, Fortitude Valley

Urban Renewal

Now Brisbane’s largest and most in-demand fringe office market, the Urban Renewal precinct has surpassed older markets like Spring Hill and Milton in popularity and price. Defined by new developments and high-quality supply, landlords here continue to deliver A-Grade offerings with fit-outs and on-site amenity and infrastructure that align with modern workplace trends. Despite already commanding premium rents, values have increased a further 3.8% this year. We believe rents will continue to increase at above-historical rates in this precinct as new build rents set new benchmarks and drag up the rest of the market.

Coronation Drive, Milton

Milton & South Brisbane

These markets were booming in the early 2010's, but the floods of 2011 and 2022 significantly impacted their appeal and increased vacancy levels. Despite the challenges of the 2022 flood event, rents in Milton and South Brisbane have still risen 3.2% over the past nine months, reflecting renewed tenant demand.

So what does this mean for tenants? This data highlights the importance of engaging well before lease expiry and educating yourself on the market. With vacancy continuing to tighten and rents rising, tenants are increasingly securing longer lease terms to lock in stability and protect against future increases.

Unsure what this means for you and your business? Contact us for an in-depth analysis of your lease -we'd be happy to help.

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