The quarterly data showed sharp competition for commercial assets, led by the $27.5 million sale of 3 Montpelier Road Newstead on a 4.63 per cent yield, the lowest yield ever recorded for a Queensland large format retail centre.
"The third quarter delivered some of the sharpest yields on record as demand for Brisbane retail continues to surge," RWC Retail head of QLD and partner, Michael Feltoe said.
"This competition is driven by a severe lack of supply, as investment-grade opportunities remain scarce."
The 3,397sqm Newstead centre generated 168 buyer enquiries before selling to a private investor.
"Achieving a benchmark yield as the tightest on record for a Queensland LFR centre shows that large format retail is Australia’s leading retail investment sector for both high-net-worth investors and institutions," Mr Feltoe said.
Suburban convenience retail also drew heavy bidding.
In Boondall, a 459sqm centre at 2270 Sandgate Road sold for $5.166 million on a 5.32 per cent yield, setting a benchmark for Brisbane this year, after pulling 383 enquiries and 15 offers.
"This centre ticked every box investors look for, a high-exposure corner site on a major arterial, longstanding tenants, and a 6.04-year WALE," Mr Feltoe said.
"Combined with pent-up demand, it is no surprise it generated the sharpest yield this year for a suburban Brisbane centre."
Interstate private buyers also drove deals across the city.
In Jindalee, a 710sqm centre at 21 Goggs Road sold unconditionally at the close of its expressions-of-interest campaign for $7.3 million on a 5.88 per cent yield to a NSW investor, drawing nine offers.
Mr Feltoe pointed to shifting tax policy as a reason for the push into commercial property.
"We're seeing an influx of first-time investors moving from residential into commercial property in response to the 2026 Federal Budget, as they seek out reliable cash flow."
Nationally, yields also compressed across early education and convenience retail, including the $18.65 million sale of Meridian Village Lifestyle Centre in Victoria on a 5.63 per cent yield, a Shell service station in western Sydney for $12.06 million at 5.70 per cent, and a Manly childcare centre for $4.85 million at 4.57 per cent.
"Looking ahead, we remain optimistic," Mr Feltoe said.
"Limited supply, proven resilience, and a growing pool of capital seeking secure income will continue to support the retail market across Brisbane."
