Cairns CBD revival gains momentum as major commercial assets drive investment and renewal

• The Cairns CBD is being revitalised, with two refurbishment projects – one underway at 
the Cairns Commonwealth Centre and another – the former Energy Queensland building - being offered to the market 
• The Cairns Commonwealth Centre is undergoing a comprehensive refurbishment, with Knight Frank recently leasing the corner building at 104 Grafton Street, owned by 
Sandran Property Group, to Queensland Government tenants
• Knight Frank has also been appointed by Energy Queensland to sell 109 Lake Street and 106 Grafton Street, a 5-level commercial property positioned directly adjacent to the Commonwealth Centre ideally suited for refurbishment or redevelopment
• Knight Frank’s recently-released Australian Regional View report found Cairns was 
emerging as one of Australia’s strongest regional commercial property markets in 
Australia

Cairns, Australia – A significant wave of investment is helping reshape the heart of Cairns, with the landmark Cairns Commonwealth Centre undergoing a comprehensive refurbishment while the adjoining former Energy Queensland building is brought to market as a major redevelopment and refurbishment opportunity.

The coordinated activity across the prominent city block bounded by Grafton, Shields and Lake Streets is expected to deliver a substantial uplift to one of Cairns' most important commercial and government precincts, reinforcing confidence in the future of the Far North Queensland city centre.

The group of buildings known locally as the Cairns Commonwealth Centre comprises three interconnected buildings spanning Grafton Street, Shields Street and Lake Street.

The complex is currently undergoing a complete makeover designed to transform the asset into a contemporary office destination while significantly enhancing the surrounding public realm.

At the centre of the project is the corner building at 104 Grafton Street owned by the Sandran Property Group, which is being upgraded to a premium Class A commercial office asset. The works include the installation of state-of-the-art end-of-trip facilities, new lifts, contemporary foyers and amenities, upgraded mechanical and electrical services, and improved sustainability credentials. All facades, glazing, walkways and building services are being replaced or refurbished to create what will effectively be a new-generation office complex in the centre of Cairns.

The revitalisation extends beyond the flagship building to encompass the wider Commonwealth Centre precinct. External works include new cladding systems, upgraded glazing, refreshed facades, improved breezeways, enhanced pedestrian connections, new finishes to podium edges and columns, upgraded handrails and better accessibility and security from Shields, Grafton and Lake Streets.

Upon completion, the project will deliver a fully refreshed commercial precinct designed to support government, corporate and professional occupiers while also improving the experience for thousands of workers and visitors moving through the city centre every day.

Knight Frank has recently leased the 2,100sq m of accommodation within the revitalised 
Commonwealth Centre corner building at 104 Grafton Street to Queensland Government tenants on a 10-year lease. The refurbished complex is expected to deliver a 4.5-star NABERS Energy Rating and provide some of the highest-quality office accommodation currently available in Cairns.

Adding further momentum to the precinct's renewal, Knight Frank Cairns has also been appointed by Energy Queensland to sell the neighbouring building at 109 Lake Street and 106 Grafton Street, a substantial five-level commercial property positioned directly adjacent to the Commonwealth Centre and adjoining the Shields Street Mall precinct.

The vacant asset comprises approximately 2,780 square metres of net lettable area on a 2,024-square-metre site and features dual street frontage to both Lake and Grafton Streets together with 22 on-site car parks. The building is ideally suited for a full refurbishment or redevelopment, and presents as one of the most compelling repositioning opportunities currently available in the Cairns CBD.

Knight Frank Partner, Cairns Greg Wood said the combination of projects demonstrated growing confidence in Cairns' commercial property and the future of the CBD.

"The Commonwealth Centre transformation represents one of the most significant commercial refurbishment projects currently underway in Cairns, and reflects the growing confidence we're seeing across the local market,” he said. “It will completely change the look and feel of this section of the CBD and create a modern workplace environment consistent with the expectations of today's occupiers.

"The adjoining Energy Queensland building provides a rare opportunity for an investor or developer to build on that momentum. With substantial capital already being invested into the precinct, a purchaser has the chance to reposition an older asset and contribute to the ongoing renewal of one of Cairns' most important commercial districts."

Knight Frank’s recently-released Australian Regional View report found Cairns was emerging as one of Australia’s strongest regional commercial property markets, as investors recognise regional centres as genuine growth opportunities rather than simply high-yield alternatives to capital cities.

The report found commercial property transaction volumes in regional areas of Australia reached $6.2 billion in 2025, accounting for approximately 11% of national transaction volumes, as population growth, economic diversification and infrastructure investment drive demand across the nation's regional centres.

In 2025, Cairns recorded nearly $228 million in commercial property transaction volumes, with officeassets making up the largest proportion, with more than $100 million changing hands.

The Australian Regional View found the Cairns office sector was in a position of strength, defined by record-low vacancy, minimal incentives and a subdued supply pipeline.

“What sets Cairns apart from many office markets is the absence of speculative development pressure,” said Mr Wood.

“The tight vacancy environment, target refurbishments and high construction costs are keeping new developments largely unfeasible, anchoring demand in existing stock.

“As a result, rental growth in Cairns is being driven by genuine competition for space, rather than incentive-led deals. With vacancy tight and incentives low, effective rents have continued to strengthen, supporting income durability for investors.”

-Ends-
For further information, please contact:
Vanessa De Groot – Marketing & Communications, Knight Frank
Vanessa.degroot@au.knightfrank.com +61 410 460211

Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, the Knight Frank network has 600+ offices across more than 50 territories and more than 20,000 people. The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Firm, please visit www.knightfrank.com.