Queensland has firmly established itself as Australia’s leading commercial property market. For owners, investors and occupiers across the state, that growth brings significant opportunity — and it also brings a more complex insurance landscape that demands specialist attention.

Recent commercial property research confirms what many in the Queensland market are already experiencing firsthand: this is no longer a story about one asset class. The state’s investment fundamentals are broadening, coastal markets are becoming institutional destinations, and a new and more diverse set of buyers is arriving at the table. Understanding what that means for your insurance program is an essential part of protecting the asset value being created.

Queensland’s Commercial Property Market: What the Data Shows

Queensland closed the 2025/26 financial year as the standout performer among the states, lifting its share of national commercial property turnover to 25.4 per cent — up from just 16.9 per cent in 2018/19 — with transaction volumes reaching $22.33 billion for the year. 

What is particularly significant for insurance purposes is not just the volume of activity, but its composition. The Queensland market is no longer concentrated in a single asset class or a single geographic corridor. Risk profiles are diversifying — and that requires insurance programs to diversify with them.

Industrial: Still the Largest Asset Class, but Broadening in Character

Industrial remains Queensland’s largest asset class, though its share of state turnover eased to 29.3 per cent from 36.4 per cent in 2024/25 — a moderation that reflects a broadening of where capital is being placed rather than any waning of appeal. Industrial buying activity this year was notable for its breadth, spanning small owner-occupiers and private investors active in strata industrial product through to large distribution facilities changing hands to institutional and offshore capital.

For insurance, industrial property presents some of the most varied risk profiles in the commercial sector. A small strata industrial unit occupied by a trades business carries a very different risk profile from a large distribution facility with complex plant and equipment, high-value stock, and significant public interface. Sum insured adequacy, business interruption coverage, and machinery breakdown protection are all areas where industrial property owners benefit from specialist advice rather than a standard approach.

Retail: The Standout Performer of the Year

Retail was the standout performer of the year, climbing to 23.4 per cent of state turnover from 17.5 per cent in 2024/25. Strong population growth across the south east, including the Gold Coast and Sunshine Coast, has underpinned trading performance at neighbourhood and sub-regional centres, restoring investor confidence in retail’s income security after several years in which the sector was largely overlooked in favour of industrial and alternative assets.

Retail property insurance carries its own distinctive set of considerations. Public liability exposure is significant in tenanted retail environments, where customer access is high and the landlord’s responsibility for common areas and building fabric is ongoing. Lease arrangements, tenant mix, and the treatment of tenant improvements all affect how a building sum insured should be calculated. Where retail centres anchor mixed-use precincts, the interaction between strata, common property, and individually owned lots adds further complexity.

Aged Care and Healthcare-Aligned Assets: The Year’s Most Significant Shift

The most significant shift in the data was the surge in aged care and medical-aligned assets, up to 9.6 per cent of state turnover from just 1.5 per cent the previous year. This was driven in large part by a number of substantial aged care portfolios changing hands as operators and institutional owners moved to consolidate holdings ahead of continued sector reform. Queensland’s ageing population continues to support long-term demand for this asset class well beyond the portfolio activity that defined this particular year.

Aged care and healthcare property is among the most specialised asset classes from an insurance perspective. These properties carry heightened public liability exposure, complex regulatory compliance obligations, and in many cases operate as going concerns where business interruption and liability coverage must be structured around the care environment, not just the building. Property owners in this space who hold standard commercial property policies without specialist review of the occupancy risk may find significant coverage gaps.

Hotels and Tourism Assets: Institutional in Scale, Complex in Risk

Hotels lifted their share of state turnover to 6.4 per cent from 3.6 per cent, consistent with strong visitor demand across Queensland, with offshore capital a regular feature of ownership given the scale of investment required.

Hotels and tourism assets involve the intersection of property, liability, business interruption, and in many cases liquor-related risks in a single asset. The building replacement cost methodology for a hotel differs markedly from a standard commercial building, and the income protection structure needs to account for the seasonal and event-driven nature of hotel revenue. For properties along Queensland’s coastal corridors — increasingly active investment markets — weather and natural disaster exposure also warrants specific attention.

Office and Development Sites: A More Cautious Environment

Office and development sites both eased back, to 12.8 per cent and 13.9 per cent of state turnover respectively, reflecting a more cautious approach to feasibility and a preference for income-producing assets in the current environment.

For office owners, the post-pandemic normalisation of occupancy patterns continues to create uncertainty around rental income levels and vacancy rates — both of which have direct implications for how business interruption and loss of rent coverage should be structured. Development sites carry construction-phase risks that require separate cover during the build period, with the transition to a completed property policy a critical point of potential exposure.

The Insurance Challenges Facing Queensland Commercial Property Owners

Beyond asset class-specific considerations, there are several insurance dynamics that apply broadly across the Queensland commercial property market right now.

Underinsurance remains a significant and widespread risk

The combination of construction cost inflation over recent years and the rapid increase in Queensland property values has left many commercial buildings insured at sums that no longer reflect replacement cost. A building that was insured adequately three years ago may now be materially underinsured — not because the owner has been negligent, but because costs have moved faster than many renewal review processes have tracked. In the event of a total loss, the consequences of underinsurance are severe and largely irreversible. Regular professional valuation of building replacement cost, independent of market value, is essential.

Natural hazard exposure is a defining feature of Queensland property risk

Cyclone, flood, storm surge, and hail exposure varies significantly across Queensland’s geography, and the insurance market’s assessment of those risks has shifted materially in recent years. Properties in coastal and low-lying areas may face coverage restrictions, higher deductibles, or specific sub-limits for natural hazard events. Understanding exactly what your policy covers, and what it excludes or sub-limits, in the context of Queensland’s natural hazard environment is not optional; it is a fundamental component of risk management.

Vacancy and change of use create coverage gaps

In a dynamic market where assets change hands, tenants turn over, and properties move between uses during renovation or repositioning, the coverage position under a standard commercial property policy can shift without the owner realising it. Extended vacancy periods, changes in occupancy type, and construction or refurbishment activity all have the potential to alter or void coverage under policy conditions that many owners are not fully aware of.

Liability exposure follows tenant mix and public access

A commercial property owner’s liability exposure is not static — it changes with the nature of the tenants occupying the building, the volume of public access, the condition of common areas, and the extent of the landlord’s ongoing maintenance obligations. As Queensland retail centres see increased foot traffic on the back of population growth, and as mixed-use precincts become more prevalent, liability coverage needs to be reviewed in the context of how the property is actually being used.

Strata and body corporate insurance requires specialist understanding

For owners of strata-titled commercial property — increasingly common in industrial, retail and office markets — the interaction between the body corporate’s building policy and the individual lot owner’s contents and liability coverage is a source of frequent and significant gaps. Understanding what the body corporate policy covers, what it excludes, and what the individual owner needs to arrange separately is an area where broker expertise matters.

Why Specialist Brokerage Matters for Commercial Property

Commercial property insurance is not a commodity product. The risks involved — from building valuation and natural hazard exposure to liability, loss of rent, and occupancy conditions — require an adviser who understands the asset class, the insurance market’s current approach to Queensland property risks, and the specific circumstances of your portfolio.

At Barrack Broking, we act as a specialist commercial property insurance broker for property owners, investors and occupiers across Queensland and nationally. Our approach is built around understanding your property, its use, its tenancy profile, and your objectives — and then accessing the insurance market to secure coverage that is matched to your risk, not simply the most convenient option.

We work with property owners across the full range of commercial asset classes — retail, industrial, office, hospitality, healthcare, and mixed-use — and our team has direct experience with the complexity that comes with Queensland’s natural hazard environment, strata arrangements, and the compliance obligations that apply to different property types.

As a principal-owned boutique broker, we bring senior attention to every client relationship. That means your program is reviewed by people who understand commercial property risk at a detailed level, not processed through a call centre or a generic renewal cycle.

Key Insurance Considerations for Queensland Commercial Property Owners

Whether you own a single tenanted retail premises or a diversified portfolio of commercial assets, the following areas are worth reviewing with a specialist broker:

Building sum insured and replacement cost

When was your building last professionally valued for insurance purposes? In Queensland’s current construction cost environment, the gap between insured value and true replacement cost can be substantial.

Natural hazard sub-limits and deductibles

Does your policy respond fully to flood, cyclone, and storm surge events — and are the deductibles applicable to those events proportionate to the risk? For coastal Queensland properties in particular, the detail of natural hazard coverage deserves close scrutiny.

Loss of rent and business interruption

If your property is rendered untenantable by an insured event, does your loss of rent coverage reflect the actual rent roll, and does the indemnity period allow sufficient time for repair or rebuilding in Queensland’s current construction environment?

Liability coverage for common areas and building fabric

Are your public liability limits adequate for the scale and nature of your property, and does the policy clearly address your responsibilities as landlord versus your tenants’ own liability?

Vacancy and renovation conditions

If your property is vacant, partially vacant, or undergoing renovation, are you aware of the conditions your policy imposes, and have you notified your insurer or broker of the change in circumstances?

Strata — what’s covered by the body corporate, and what isn’t

If you own strata-titled commercial property, do you have a clear picture of where the body corporate policy ends and your individual coverage needs to begin?

Talk to Barrack Broking About Your Commercial Property Insurance

Queensland’s commercial property market is growing in depth and sophistication. The insurance programs protecting those assets need to keep pace. If you would like a specialist review of your commercial property insurance arrangements — whether for a single property or a portfolio — the team at Barrack Broking is available to help.

We service clients nationally from our offices in Sydney, Brisbane and Maroochydore, with deep familiarity with the Queensland market and its unique risk characteristics. To find out more about our commercial property insurance broking services, contact our team today.

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*This article is general in nature and does not constitute financial product advice. Commercial property owners should seek specific advice from a qualified insurance broker regarding their individual circumstances and coverage requirements.