Adaptive reuse is emerging as one of the smartest plays in Brisbane’s CBD ahead of 2032—and the numbers prove it.

With six years until Brisbane hosts the Olympic and Paralympic Games, the city’s construction industry is already under strain.

Labour shortages are biting, costs are climbing and developers face a clear deadline: get the job done by 2028, before labour dries up.

But Brisbane’s unloved and stranded office blocks could be a solution to the city’s gaping void of hotels and housing.

“Adaptive reuse is brilliant for a number of different reasons,” Colliers national director of project leaders Scott Coakes says.

“In many cases, it is definitely cheaper and faster. We have a big issue with structural trades at the moment, and by reusing a building we remove the structural trades from the equation—which for a developer is incredibly attractive,” Coakes says.

A market set up for conversion

Colliers’ May 2026 research report, Brisbane 2032: Creating Solutions, identifies at least 19 potential office conversion sites across the CBD’s key corridors—Adelaide, George and Queen Streets—over a five to 10-year horizon.

The report estimates adaptive reuse costs at around 75 to 80 per cent of a comparable new build.

rendering of a 24 storey office building with a timber top, white podium and glass facade

▲ The new building at 450 Queen Street will be transformed into one of Australia’s most sustainable commercial buildings. Source: FK

That differential is especially compelling right now, with many CBD assets trading 20 to 45 per cent below replacement cost, according to Coakes.

But for the equation to stack up, the buildings need to be vacant possession and asset values need to fall to levels that support redevelopment, as evident in the office-to-student-beds conversion of 41 George Street in Brisbane.

Coakes says it is now a rare entry point to acquire underperforming stock cheaply, reposition it, and ride Olympic-driven demand growth into the early 2030s.

But the structural trades problem is perhaps the most urgent argument for adaptive reuse.

Cost differentials between in-situ and off-site construction

	Onsite construction ($/sq m)	Offsite construction ($/sq m)	Savings (%)
Structure	$1250 - $1600	$950 - $1350	3% - 5%
Facade	$900 - $1200	$800 - $1150	5% - 12%
Wet areas	$1200 - $1800	$900 - $1500	8% - 15%
Services			2% - 5%

Source: HMC Quantity Surveyors

Queensland’s construction pipeline has more than doubled in the past five years, forecast to average $69 billion annually and peak at $75 billion in 2027–28.

The CSQ Horizon 2032 report projects a peak workforce shortfall of up to 35,000 workers by that same year, with concrete formwork and reinforcing trades at the sharp end of the squeeze.

“We’ve got a massive issue with structural trade—concrete, formwork, reo,” Coakes says. “We’re in all sorts of trouble with them right now.”

Adaptive reuse strips those trades largely out of the program.

There are always unknowns when a building is opened up “until you get back to a bare shell, who knows what you’ve got,” Coakes says, but the savings in structure create significant headroom to solve those problems.

Adaptive reuse costs

	New Build	Adaptive Reuse
GFA	31,000sq m	31,000sq m
$/sq m GFA	$5500 - $6800	$4500 - $5200
Base Cost	$190 million - $200 million	$145 million - $155 million
Cost as $ of new build	100 per cent	75 - 80 per cent

Source: RLB

The case studies making the argument

Brisbane already has real-world proof of concept.

The celebrated Midtown Centre in Brisbane was created by forging two 1980s government office blocks on Adelaide Street into one campus.

Facades were stripped to raw concrete shells, floor slabs integrated, and additional storeys added to reach 26 levels—achieving a 70 per cent increase in net lettable area in what has been described as an Australian first.

More than 50,000 tonnes of concrete and 3600 tonnes of steel were retained, delivering a 25 per cent reduction in construction costs.

The acquisition was $66 million. The completed asset is valued at $660 million.

“The amount of potential money to be made is astronomical,” Coakes says.

“You just need some deep pockets.”

▲ The Midtown Centre in Brisbane has been a major drawcard to the undervalued CBD precinct. Source: FK (top render)

Another former Queensland Government building at 41 George Street is equally instructive.

A 1979-built, 27-storey B-grade office tower that housed the Queensland Government for 43 years is being converted by Dexus into a 1180-bed student accommodation facility, and due to open ahead of Semester 2, 2026.

The existing concrete structure is retained, floor plates have been reconfigured, and modular, offsite-manufactured ensuites installed for each studio.

The building was acquired for about $135 million; the estimated end value is around $500 million—and it is the first PBSA development in Australia to achieve a NABERS embodied carbon rating under the adaptive reuse tool.

A third project—450 Queen Street—is expected to further validate the model on completion. The adaptive reuse of the existing structure and the cross-laminated timber crown are reinvigorating an aged asset, which will result in a 70 per cent reduction in upfront carbon compared to a new build.

What makes a viable candidate

But not every ageing office block is a conversion prospect.

Coakes is clear about the criteria: floor-to-floor height, structural adaptability, location, and capital.

The report focuses on B and C-grade stock—assets no longer competitive commercially but well-located for alternative uses. Premium-grade buildings rarely stack up for an adaptive reuse strategy.

But with C and D-grade vacancy rising amid Brisbane’s flight to quality, that moment is arriving for a growing number of CBD buildings.

The sustainability case is real too, even if Coakes is pragmatic about how much weight developers give it upfront; “developers get to say they’ve been fantastically environmentally friendly while saving money and delivering a project sooner.”

The 41 George Street conversion saves an estimated 20,800 tonnes of CO₂-equivalent over its life; Midtown was assessed as 246 per cent more environmentally friendly than a demolish-and-rebuild approach.

▲ The former government building at 41 George Street is being converted to student accommodation, using modular elements in construction.

The window is narrowing

But it’s all about timing, according to the Colliers research report.

Brisbane is at the start of a multi-stage expansion, with the largest surge in demand still ahead as Olympic operational requirements ramp up through 2028–2032.

But from 2027 onward, labour will increasingly be locked into major public infrastructure projects, pushing delivery costs higher and squeezing private development feasibility.

“There’s a lull right now where builders are looking to fill a gap,” Coakes says.

“The squeeze from the Olympics and government projects will make it harder for private developers. Some might just land bank and hold on. But there are just not the resources available.”

For the right buildings, in the right locations, with the right capital, adaptive reuse offers a credible path through that squeeze—faster, cheaper, and cleaner than starting from scratch.

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