Insights H1 2026 | 33 Des Besanko of Commercial Mackay says there has been some to-and-fro between the big mining companies and the Queensland state government regarding changes to the mining tax, formally known as the ‘coal royalties scheme’, especially as the price of coal has softened leading to compressed margins. “Given the softer coal price, combined with the royalties structure, companies like BHP have placed a number of mines into maintenance, meaning they’re no longer operating or producing coal, and this has resulted in some job losses. The bigger issue with coal royalties is that miners are holding back on further investment in Queensland operations. This limits expansion and the development of new projects. They view Queensland’s tax regime as among the most expensive in the world and are instead deploying capital into other countries where returns are stronger.” This has also resulted in resource-related contracts being shuffled around, which has impacted Mackay’s leasing market for subsidiary businesses. That said, the local market is still undersupplied, especially for industrial property. Des also notes he is seeing several large-scale businesses consolidate their facilities, and this has driven the sale of several multi-hectare sites in Mackay. Des Besanko des.b@rhc.com.au Mackay Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $250-$350 $175-$225 $150-$200 Vacancy n/a n/a n/a Yields 7.5-8.25% 6.25-7.5% 6.5-7.5% Rates p/m² n/a n/a n/a Current market conditions Photo Confidential $8,210,000 33 Michelmore, Paget Recent Notable Transactions SOLD $464,680 p.a. +outgoings + GST 42-44 John Vella Drive, Paget LEASED
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