Finding the Right Office Space: Understanding Building Grades in the Brisbane CBD

How building quality can shape your business experience

Choosing a new office space is much like booking a seat on a plane. You’re committing to it for a period of time, and the experience can genuinely make or break your journey. Whether it’s first class, business or economy, each option comes with different price points, comfort levels and expectations.

The same principle applies when selecting office space for lease in Brisbane’s CBD. Before committing to a commercial lease, businesses must understand what they can afford, what they actually need, and how different building grades influence cost, comfort and long-term value.

To help guide this decision-making process, office buildings across Australia are graded using guidelines established by the Property Council of Australia (PCA). These classifications help tenants compare buildings on a like-for-like basis, particularly when reviewing commercial office space for lease in Brisbane.

How Office Buildings Are Graded

Office grades are assessed consistently across Australia and are influenced by several core criteria:

• Building age
• Total building Net Lettable Area (NLA)
• Typical floorplate size
• Location within the CBD
• Lift quantity, speed and efficiency
• Environmental credentials (NABERS and Green Star ratings)
• Building Management Control Systems (BMCS)

While the grading system provides structure, it’s important to note that quality can still feel subjective depending on location, demand and how much investment an owner has made into the asset. In Brisbane, supply levels within each precinct also influence how buildings are perceived and positioned in the market.

Premium Grade Office Buildings

Premium Grade office towers represent the highest standard of commercial office accommodation available in the Brisbane CBD. These assets set the benchmark for design, amenity, technology and tenant experience.

Premium buildings are typically:

• Located in the most tightly held parts of the CBD, often within the Golden Triangle
• Purpose-built or extensively redeveloped with Premium classification in mind
• Designed to attract global occupiers and highly client-facing businesses

Common features include:

• State-of-the-art building systems
• Elite lobby and concierge services
• Efficient HVAC and security systems
• High-end end-of-trip facilities
• Ground-floor dining and hospitality offerings
• Full-height glazing and premium architectural finishes

These buildings command the highest face rents in the market and offer a level of luxury and privacy that is difficult for other grades to replicate.

There are currently six Premium Grade office buildings in the Brisbane CBD:

• 123 Eagle Street (1986)
• 1 Eagle Street (1989)
• 71 Eagle Street (2005)
• 111 Eagle Street (2012)
• 480 Queen Street (2016)
• 80 Ann Street (2022)

Despite new supply entering the market, Premium Grade vacancy has tightened significantly due to a sustained flight-to-quality trend, with assets such as 80 Ann Street leasing strongly since completion.

Brisbane also has three Premium developments currently in the pipeline, reinforcing the ongoing evolution of this grade as technology, sustainability and tenant expectations continue to advance.

A Grade Office Buildings

A Grade buildings offer a high-quality office environment that closely mirrors Premium Grade, but with some compromises in scale, location or finish.

These assets typically feature:

• Strong building systems and management
• Quality lobby and shared amenities
• Competitive NABERS ratings
• Prime CBD positioning without Premium pricing

From a tenant perspective, A Grade buildings often represent excellent value, particularly for businesses seeking a high-end fit out without the rental premium associated with flagship towers.

Importantly, many A Grade buildings will never transition to Premium due to size limitations, regardless of their presentation or sustainability credentials.

A clear example is 12 Creek Street – The Annex, which presents at a Premium level with:

• Elite ground-floor amenity
• 6-Star NABERS ratings
• Full-height glazing

However, its overall building size prevents it from meeting the PCA Premium threshold.

As Brisbane’s office market continues to mature, A Grade stock is expected to evolve alongside Premium buildings, driven by tenant demand for quality without excess.

A- / B+ Grade Office Buildings (Caden Classification)

The A- / B+ Grade is not formally recognised by the PCA. This classification has been developed by Caden Research to better reflect a growing segment of the Brisbane CBD office market that sits between traditional A and B Grade definitions.

This category captures buildings that:

• Present above standard B Grade
• Fall short of full A Grade due to smaller floorplates or scale
• Exhibit strong occupancy and rental performance

Examples include:

• 307 Queen Street
• 333 Ann Street

These assets typically offer floorplates of 800–860sqm, compared with the 1,100–1,250sqm commonly seen in A Grade buildings. Their face rents also sit below broader A Grade benchmarks.

Conversely, several higher-performing B Grade assets such as 260 Queen Street and 324 Queen Street have been included due to:

• Prime CBD locations
• Recent lobby and building refurbishments
• Improved rental profiles following capital investment

This grade allows for market-based judgement, recognising that targeted upgrades such as end-of-trip facilities, concierge services and lobby enhancements can materially reposition an asset.

We expect a growing number of B Grade owners to pursue this transition path over the coming years.

B Grade Office Buildings

B Grade buildings make up the largest share of office stock in the Brisbane CBD, with 79 buildings currently classified within this category.

These assets are typically:

• Secondary in location or presentation
• More flexible in leasing structures
• Well suited to small-to-medium enterprises (SMEs)

B Grade landlords are often more willing to:

• Subdivide larger floorplates
• Offer shorter lease terms
• Invest in spec suites to attract tenants

Currently, 60% of all spec suites in the Brisbane CBD are delivered within B Grade stock. This strategy has proven effective, with 57% of all office leasing transactions in 2021 occurring in B Grade buildings.

A standout example is 201 Charlotte Street, which has undergone a full lobby refurbishment. This investment has effectively repositioned the building from B Grade toward A Grade status, highlighting how targeted upgrades can reshape market perception.

As PCA benchmarks gradually lift, we expect the B Grade market to continue improving, evolving in parallel with tenant expectations and broader CBD investment trends.