General News
5 November, 2026
City centre set for upgrade
TWO city office buildings are breathing life into the Cairns CBD.
The Cairns Commonwealth Centre on the corner of Grafton and Shield streets is undergoing a comprehensive refurbishment, with Knight Frank 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 five-level commercial property positioned directly adjacent to the Commonwealth Centre and ideally suited for refurbishment or redevelopment.
The 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, 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 centre will 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.
The Ergon building comprises approximately 2780sqm of net lettable area on a 2024sqm site and features dual street frontage to both Lake and Grafton streets together with 22 on-site car parks.
Knight Frank says the building is ideally suited for a full refurbishment or redevelopment.
Knight Frank Cairns partner 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 office assets 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.”
