Problems in the CBD: Office vacancy squeeze and lack of coming supply sparks fears

There are plenty of concerns rippling through the CBD over the future of the office market, as Flight Centre starts looking for a new HQ and BOQ may have found a home.

There are major issues looming for the Brisbane CBD.

We can’t help thinking of Dad’s Army’s Lance Corporal Jones’ catchphrase: “Don't panic, don’t panic” when we hear about worries rippling through the CBD.

Rising rents of up to 30 per cent over the last two years, expectations of a tightening vacancy rate from the current 10.2 per cent, a dwindling office tower pipeline – not to mention the CFMEU, rain, offshore capital concerns, construction costs, the Trump effect and everything about the Olympic build – there is plenty to get the nervous Nellies talking.

On the other side of the coin others at the sharp end are saying that while things aren’t exactly rosy with new office tower supply, demand may not be galloping ahead as quickly some may think and it’s more of a “steady as she goes scenario” in the CBD.

Brisbane city central business district skyline.

Meanwhile, there are still some big players in the market with Flight Centre, which is currently in 275 Grey St in South Brisbane, recently putting out a 13,000 sqm to 16,000 sqm requirement.

ANZ is still sniffing around for up to 12,000 sqm to 15,000 sqm while we hear the Bank of Queensland is running the ruler over Charter Hall’s 33-storey tower at 360 Queen St which along with Cbus Property’s 205 North Quay office tower should be completed by the end of the year.

We also understand that CPB Contractors in the Valley may be looking to move into the city

for anything up to 10,000 sqm.

But with Dexus’ North Tower at its multi-billion dollar Waterfront Brisbane development scheduled to be finished by 2028, and nothing else on its way – we think the nervous Nellies may soon be start outnumbering the more calmer folk as time passes.

AI upgrade

Three renowned early investors have backed removalist booking business Muval to launch a new industry-specific AI-powered, sales-first platform that aims to revolutionise the country’s $1.8bn industry.

Queensland Investment Corporation, Uniquest and angel investment company ACAC Innovation have closed a $1m follow-on round with the Brisbane-headquartered company.

It was the first time QIC has invested in the company.

The investment will help fast-track the rollout of Movepro, its new white label software technology, designed to improve the reputation and efficiency of more than 7500 Australian removal companies.

Muval CEO James Morrell.

Co-founder and chief executive James Morrell (illustrated) says the idea arose from the success of Muval, an online marketplace that enables people and businesses to find, compare and book quality removalists.

“Australia’s moving industry is large, but highly-fragmented, with a significant portion of operators using antiquated or limited technology to book and manage jobs,” he says.

“As an online marketplace, quality-assurance is at the forefront of everything we do. “Currently, due to our high service standards, we are currently only able to accept about 25 per cent of the removalists that apply to join the platform; this limits the impact we can have.

“Movepro will change that. This will have a massive knock-on effect for improving the almost universally hated experience of people moving house.”

The AI-powered, sales-first platform, which will be available in the coming months, will offer online bookings, streamlined payments, automated workflows, quality-assurance guards, in-built communication, smart scheduling, and more.

Since launching in 2019, Muval has gone on to facilitate more than 50,000 moves.