Brisbane’s commercial market is rebounding quickly as demand for office space continues to be led by increased business activity from the resources sector.

Queensland Executive Director of the Property Council of Australia Kathy Mac Dermott said the Property Council’s Office Market Report showed CBD office vacancy rates had dropped to 7.4 per cent as at 1 July this year. This was coming off a 15 year high of 11.3 per cent only 18 months earlier.

“In the six months to July this year we experienced net absorption in Brisbane’s CBD at a rate more than triple the 20 year average,” Ms Mac Dermott said.

“While the next Office Market Report is not due for release until early next year, the intelligence from our members is that demand for space continues to run strong and could potentially lead to very low vacancy rates in Brisbane’s CBD and fringe, particularly in 2013-14.

“This demand for office space – and in many cases for large space users - continues to be led by increased business activity from the resources sector,” said Ms Mac Dermott.

According to the Property Council, this rebound is dramatically demonstrating the important role of property in transmitting the benefits of the mining boom to the broader Queensland economy.

With many people concerned that the resources boom is creating a two-speed economy, it has become clear that the property sector is the critical conduit that will link the prosperity of the mines with the rest of the state.

“This is one of the first tangible links between the resource investment boom and the broader Queensland economy," said Ms Mac Dermott.

“It also demonstrates that unlocking investment in Queensland’s property sector is a critical component in achieving the State’s economic recovery and delivering the generational benefits from the resources boom."