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Home Gold medal growth: Australian Commercial Real Estate and Brisbane’s Olympic advantage
April 1, 2026

Gold medal growth: Australian Commercial Real Estate and Brisbane’s Olympic advantage

Colin Mackay, Research & Investment Strategy Manager at Cromwell


Colin Mackay, recently hosted a roundtable discussion with investors at the Markets Group 7th Annual Australia Investors Forum in Sydney, examining the key forces shaping commercial property returns. The session brought together senior investment leaders for an in‑depth discussion on market fundamentals, emerging trends and opportunities across the sector. Below are the key insights from the discussion.

 

1. Supply and demand remain the fundamental drivers

While higher interest rates have understandably dominated headlines, Colin emphasised that the balance between supply and demand remains the primary driver of unlisted commercial property returns. History supports this view—the asset class has demonstrated resilient performance through previous rate-hiking cycles and periods of geopolitical uncertainty.

 

2. Constrained supply is the biggest story

Perhaps the most significant theme from the roundtable was the severe constraint on new supply. With construction costs elevated and financing conditions tight, most potential development projects simply don’t stack up economically. They’re unlikely to proceed until rents and asset values appreciate meaningfully.

For owners of existing quality assets, this supply drought is supportive of a stronger income growth outlook. Fewer new buildings competing for tenants means greater pricing power for well-located, well-managed properties already in the market.

What matters most for investors is understanding where supply constraints and demand tailwinds intersect.

3. AI and the office: winners and losers, not wholesale disruption

The roundtable addressed a question on many investors’ minds: will artificial intelligence spell the end of the office?

Colin’s view is clear—AI will not be the death of the office. However, there will be winners and losers. Technology adoption will reshape how and where people work, but quality assets in strong locations will continue to attract tenants. Asset selection will be critical to outperformance in this environment.

 

 

4. Brisbane: Australia’s top-performing office market

Brisbane continues to stand out as the country’s strongest office market. The fundamentals are compelling:

  • Low vacancy rates relative to other major capitals
  • Long-term demand tailwinds driven by population growth and favourable industry composition
  • A constrained supply pipeline that supports existing asset values

These dynamics have already delivered results. As we noted in our recent research, prime-grade office assets nationally have recorded demand growth of 11% over the past five years, and Brisbane has been a standout performer within that trend.

 

5. The Olympics factor

Brisbane’s selection as host city for the 2032 Olympic Games adds another dimension to the investment case. The event will catalyse significant infrastructure investment across transport, precincts, and public amenity— improvements that can have lasting benefits well beyond the Games themselves.

For office assets in the CBD, the Olympics provide a clear timeline for urban renewal and an influx of global attention that reinforces Brisbane’s position as a tier-one Australian city.

For office assets in the CBD, the Olympics provide a clear timeline for urban renewal and an influx of global attention that reinforces Brisbane’s position as a tier-one Australian city.

Introducing Cromwell Creek Street Investment Trust

This 24-storey office tower sits on a 1,722 square metre parcel in the heart of the city, leased to a diverse tenant base. The acquisition reflects our conviction in Brisbane’s office market fundamentals and our research-driven approach to identifying opportunities where sentiment has become dislocated from underlying value.

For wholesale investors seeking exposure to a quality Brisbane office asset with strong income characteristics and long-term growth potential, the Trust offers a compelling entry point at this stage of the cycle. Cromwell is now finalising commitments from investors for approximately 75% of the target equity. If you are considering applying, we encourage you to do so soon to avoid potential disappointment.

A prime Brisbane investment opportunity

Cromwell Creek Street Investment Trust for wholesale investors is now open. With a forecast distribution yield of 8.0% p.a. paid monthly.

For wholesale investors only. Minimum $100,000 investment.

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