The Cairns commercial property sector has weathered seismic shifts in recent years, but developer and entrepreneur Marcus Chen is betting big on a measured recovery—and his moves across the CBD are drawing investor attention.
Chen's portfolio spans three major acquisitions along Grafton Street and Abbott Street since 2023, totalling approximately $47 million in combined assets. Most recently, his firm Cairns Urban Properties completed a $12.8 million renovation of a 1970s office tower near the Cairns Convention Centre, converting 35 per cent of the space into hybrid work studios and flexible licensing arrangements.
"The traditional nine-to-five office is dead in some markets, but Cairns is different," Chen told The Daily Cairns in a recent interview. "We're seeing professional services firms, tourism operators, and tech companies actively seeking quality workspace. They want character, location, and adaptability."
The data supports his optimism. While vacancy rates across central Cairns hovered near 12 per cent in late 2025, premium-grade office space—particularly properties with modern amenities and street-level activation—maintained occupancy near 87 per cent. Rental rates for A-grade offices have stabilised around $385 per square metre annually, a modest 2.3 per cent increase year-on-year.
Chen's strategy diverges from outdated warehouse conversions dominating other regional centres. His developments emphasise visibility, connectivity to cafés and retail along The Esplanade, and flexible lease terms that appeal to growing professional services firms relocating from Brisbane. The Abbott Street project now houses a boutique law practice, an accountancy firm, and a digital marketing agency—each occupying bespoke spaces.
Local commercial agent Rebecca Molloy from Tropical Property Group noted that Chen's willingness to subdivide larger holdings has addressed a genuine market gap. "Small to medium enterprises need 800 to 1,200 square metres, but traditional offerings were 3,000 sqm minimum," she said. "His modular approach has activated buildings that were otherwise struggling."
The broader Cairns CBD office market remains selective. Older stock without air-conditioning upgrades or modern IT infrastructure languishes, with vacancy pushing 18 per cent. However, Chen's precedent suggests investors now recognise that capital expenditure on renovation yields stronger tenant retention and premium pricing.
As the city continues attracting remote workers and decentralising professional services, Chen's adaptive model offers a compelling roadmap for property owners seeking relevance in an evolving marketplace.
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