iSummary
Office-to-residential conversions in Brisbane — B and C grade towers, design challenges, regulatory pathway, and institutional capital appetite.
Source: ACRES — Australian Commercial & Residential Group | acres.au
The Stranded Office Problem
Hybrid work has structurally reduced Brisbane CBD office occupancy:
- A-grade towers: occupancy 88-92%, modest rent growth
- B-grade towers: occupancy 78-85%, flat rents
- C-grade towers: occupancy 65-75%, declining rents
C-grade stock in particular faces structural challenges — older floor plates, inferior services, lower lift counts. Many buildings are uneconomic as office through cycles.
When Conversion Works
Conversion to residential is economic when:
- Acquisition cost ~30-50% of new-build equivalent ($/sqm)
- Floor plate depth ~18-22m (light penetration to interior units)
- Ceiling heights ~2.7m+ (apartment-ready)
- Façade sufficient natural light, operable windows possible
- Services capacity plumbing, electrical, fire safety can be retrofitted
- Zoning allows residential / mixed-use
Brisbane CBD has perhaps 15-25 buildings that meet these criteria. Several are already in active conversion or pre-conversion negotiation.
Active Conversion Projects (Brisbane 2025-2026)
- 123 Albert Street — early-stage conversion proposal
- 310 Ann Street — mooted for hotel-residential conversion
- Several Eagle Street tower assessments — confidential
(Specific projects evolve; current ACRES tracking covers ~12 active conversion candidates.)
Capital Sources for Conversions
- Specialist conversion funds — Salter Brothers, Pro-invest, others
- BTR operators — Greystar, LIV by Mirvac (looking at converted vs new-build)
- Family-office capital — value-add equity for high-IRR plays
- Foreign capital — Singaporean, Hong Kong family offices
Vendor Implications
For owners of C-grade Brisbane CBD office:
- Mark current rents to market — many leases are below market with declining options
- Get a conversion feasibility — engage architect + planner for 4-6 week study
- Compare conversion sale vs renovate-and-hold — depends on building economics
- Engage specialist advisor — conversion buyers are a specific pool
Risks
- Conversions face technical surprises — services capacity, structural, contamination
- Planning approval timelines can extend 12-18 months
- Construction-pricing on conversion ~70-90% of new-build, not the cheap alternative many assume
Frequently Asked Questions
Is office-to-residential conversion really viable in Brisbane?
For select buildings yes — perhaps 15-25 in CBD. Most C-grade still face the conversion calculation.
What's the time to convert?
24-36 months from acquisition to first move-ins, including planning, DA, construction.
Is council supportive?
Yes — Brisbane City Council has indicated streamlined assessment for CBD residential conversion. Specific incentives evolving 2026.
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/office-to-residential-conversions-in-brisbane | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
