What the Labour Re-Election means for Commercial Real Estate
Commercial Property Owners in Brisbane should be aware of Labours proposed policies following their Re-Election and how this can impact the commercial property market.
Infrastructure & Industrial Growth
Labours proposal to spend $10B+ in infrastructure is expected to boost demands for industrial and logistics assets, particularly in Brisbane's Fringe and Outer Suburbs. This aligns with Q1 2025 data showing 71% of industrial leasing activity occurred in the South and West submarkets.
Sustainability Mandates Incoming
Owners may need to budget for more costs to bring their buildings up to new standards with stricter ESG and energy efficiency regulations on the horizon. It is increasingly likely that older buildings will require retrofitting rather than optional upgrades. As of 2024, just 38% of Brisbane’s commercial properties achieved a NABERS rating of 4.5 or higher - a shortfall that upcoming policies aim to eliminate.
Interest Rates
With interest rates forecasted to drop making loans more achievable, this is expected to further drive demand and add to business and consumer confidence.
Retail & Office Rebound
Labor’s cost-of-living relief, healthcare expansion and reduction of student debt cuts are expected to boost consumer spending, ultimatley supporting retail tenancies. At the same time, Brisbane’s office sector is gaining momentum, with A-grade rents in the CBD rising 4.2% year-over-year and vacancy levels continuing to decline.
Investor Sentiment
Queensland currently tops the country in commercial property confidence, with projected capital growth of 3.1% over the coming year. The recent election outcome is expected to further strengthen this positive outlook, particularly in industries set to benefit from increased public sector investment.
If you have any questions regarding your commercial property, our experienced team of Commercial Real Estate Agents are here to help with your Sales, Leasing and Property Management needs. Contact our team on 07 3870 2555.