McCullough Robertson, QIC and Credit Union Australia reassess their Brisbane office options
Leading businesses are reassessing their Brisbane CBD office requirements after the COVID-19 hiatus.
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OFFICE OPTIONS
WHILE some may think the CBD office leasing market is facing a coronavirus-led armageddon this year others are seeing some light at the end of the tunnel.
Smaller deals being done … and while there are expectations of a potential downsizing in space by some of the larger companies, there is some movement at the big end of town.
We hear that some of the larger companies who were actively engaging the market for a new office at the start of the year are reassessing their office options.
Lawyers McCullough Robertson, who are at 66 Eagle Street has a 5500sq m requirement and the latest news is that Credit Union Australia which had a 7000sq m requirement in the market pre-covid now has a short-listed of 123 Albert Street and 300 George Street with the option of staying put at 145 Ann Street.
There are plenty of other firms running the slide rule over the economics of a new office — especially with incentives now well over 40 per cent and face rents edging lower.
Stay tuned.
BOQ RUMOURS
ONE of the most persistent rumours around is that the Bank of Queensland is assessing its options and is keen to get back into the CBD.
After being a feature of Brisbane’s CBD for decades, BOQ relocated to 100 Skyring Terrace, Newstead in the Gasworks precinct in the back end of 2014 on a 12-year lease.
With six to seven years left on the lease you would think the bosses at BOQ would wait it out for a while longer however the market is saying where there’s smoke there’s fire.
According to a BOQ spokeswoman: “BOQ has a long-term lease agreement for its Newstead head office. While we continually review the market, we have no current plans to relocate.”
DEMOLITION WORK
MEANWHILE, demolition work continues on a Queen Street site in preparation of the construction of Charter Hall/Investa’s $650m office tower at 360 Queen Street.
Back in March QIC was close to signing a 10,000sq m precommitment while co-working group Work Club Global was also eyeing about 3000sq m of space.
Both deals, which probably would have kick started the 33-level project, were put on hold because of the coronavirus lockdown.
However, Charter Hall/Investa kicked off the demolition of the buildings with no precommitments.
But not all is lost.
We understand QIC has started reassessing its options and are having a look at the 42,000sq m building.
Some pundits are saying a decision may come sooner than we think.
WORKING WELL
THERE’s been a fair bit of speculation on how the co-working sector is handling the covid-led office crisis.
The attraction for many businesses to co-working facilities are great shared facilities, short lease terms and a collaborative environment — three things that don’t hold great currency in the COVID-19 world.
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Anyway, Commercial Confidential made inquiries and one of the biggest co-working businesses in the land, WeWork, says it’s pretty much business an usual.
In fact they say demand has lifted since Queensland became one of the better performing states in the fight against the pandemic.
The company has 19 locations across Australia and three so far in Brisbane — the old Mincom building at 310 Edward Street and the Riverside Centre in the CBD, and 25 King Street at the RNA Showgrounds redevelopment at Bowen Hills.
Back when we asked a few weeks ago WeWork said pre-covid 310 Edward St — which opened in December 2018 — had an occupancy above 55 per cent, which wasn’t that bad as the company says it takes at least 18 months for their new locations to mature.
“Like all businesses, we’ve taken a hit as a result of covid and saw a drop in members coming into our locations as member companies started to work from home,” a spokeswoman said.
“Due to covid, occupancy at 310 Edward Street dropped to 45 per cent as a number of our flexible, month-to-month memberships paused their accounts.”
However, with the relaxing of lockdown restrictions close to 90 per cent of WeWork members in Brisbane are back in their three offices, with a number of Edward Street members relocating to the company’s new Riverside Centre offices.