We are pleased to launch the Brisbane CBD Office Spotlight report, Savills Research looks at the strength of the state's economy, the 'flight to quality' trend, and its implications for occupier and investment markets.

Brisbane's CBD office market is currently experiencing sustained strength in occupier markets, driven by robust demographic tailwinds and a severe undersupply of premium grade stock and developments. This has resulted in strong face rental growth and downward pressure being placed on incentives in 2023. 

Growing sectors, including professional services, government, and real estate, are fuelling the ongoing 'flight to quality' trend. This is evident in the Brisbane CBD, which has the most tightly held premium market in Australia.

Higher inflation levels have led to a rapid increase in interest rates, causing the bid-to-ask spread to widen. This has prompted many investors to adopt a 'wait and see' approach, keeping investment activity subdued over the last 12 months. However, growing confidence that the RBA may be nearing the end of its cycle will encourage many investors to test the market.