Australia Post Signs 99-Year Lease to Transform Brisbane GPO

Australia Post finalized a 99-year leasehold agreement in October 2026 to transform Brisbane’s heritage-listed General Post Office into a mixed-use retail and commercial precinct.

Real estate investment management and advisory firm Mackwell secured the long-term lease for the 1872 property at 261 Queen Street, marking the first time the site has been offered to the market.

Under the agreement, Mackwell will reconfigure the historic building into new office accommodation and retail spaces. Australia Post confirmed it will retain its full suite of postal services within the precinct without interrupting regular trading hours. CBRE Capital Markets, Offices, Queensland brokered the transaction.

Queen Street Mall Link and Commercial Strategy

The overhaul connects the property directly with foot traffic from the adjacent Queen Street Mall retail corridor. Australia Post Group Chief Financial Officer Craig Roberts said the deal allows the state-owned postal operator to monetize dormant floor area.

“We know how important our services are to the community and the Post Office will continue to operate from this site, ensuring CBD workers and residents have easy and convenient access,” said Craig Roberts, Australia Post Group’s CFO.

Mackwell Managing Director John Robson intends to pitch the heritage asset as high-end boutique commercial space. Preserving stone masonry while cutting in modern building services and vertical circulation will form the primary engineering cost.

Capital Recycling Ahead of the 2032 Games

State infrastructure authorities and commercial property developers are racing to modernise Brisbane’s central business district before the city hosts the 2032 Olympic Games. Private capital continues chasing inner-city parcels that carry established foot traffic rather than speculative peripheral builds. Long-dated ground leases offer public corporations upfront liquidity while retaining freehold title over crown land.

For regional retail landlords, the entry of refurbished character space places pressure on standard institutional office towers along Queen Street. Heritage retail tenancies often command rental premiums from luxury fashion and food operators seeking distinct architecture rather than standard mall shells. Mackwell carries the leasing risk if corporate tenant demand for central Brisbane floor space softens during construction.

Operational Counter Hours and Next Steps

The building was purpose-built for the Australian postal network in 1872. The public entity has spent the last decade rationalising physical post shops as parcel volumes eclipse traditional letters, offloading or repurposing metropolitan real estate to fund automated parcel hubs.

Counter operations at 261 Queen Street will maintain existing schedules during early construction work, trading Monday through Friday from 8:30am to 5:00pm and Saturday mornings until 12:30pm. Mackwell will submit formal heritage architectural filings and tenancy configurations to local planning authorities before physical building works commence on site.