Commercial Confidential: Brisbane property, leasing news and gossip

A NUMBER of major players could be about to drop sublease space on to the Brisbane market, raising questions over how this will affect the CBD vacancy rate and office tower sales.

Japanese billionaire Katsumi Tada on top of Daisho's 34-storey 180 Brisbane as it was under construction in 2015.

WHILE there are some expectations of a tightening of the Brisbane CBD office vacancy rate by the end of the year, there’s plenty of speculation that a number of major companies will be putting sublease space out to the market.

At the centre of this speculation is Japanese billionaire Katsumi Tada’s Daisho’s office tower at 180 Ann St, which a few years ago signed up the Commonwealth Bank, Origin Energy and Tatts on long-term leases with very generous incentives.

The CBA is believed to be the latest considering offering one or two of its floors in the tower to the market, joining Origin Energy which is understood to be preparing to put two of its floors on the sublease market after announcing the sacking of 650 workers a couple of weeks ago.

Tatts, which has 10 floors in the building, is also expected to put space in the tower on the market.

How will space race play out?

THE question is, how will this potential release of sublease space affect the CBD vacancy rate, which according to the Property Council stands at 16.2 per cent?

And how will that, in turn, affect office tower sales in the Brisbane CBD? The question may well be answered in the next few months.

US private equity giant Blackstone has kicked off the selling season, putting up four of its buildings for sale in an early test for the market in 2018.

Blackstone wants to offload a parcel of three office buildings on the corner of the Queen Street Mall and George St, which pundits say may go for about $150 million, through JLL and Colliers International.

The site has approval for an 81-storey residential building but Blackstone’s decision is an indication of the lack of confidence in the high-rise apartment sector at the moment.

Also, Blackstone is selling is office building at 127 Creek St which it bought in 2013 from GE Capital.

The tower has been tipped to sell for about $140 million through CBRE and Knight Frank.

Brisbane City Skyline. Pic Darren England.

Industrials going strong

MEANWHILE the industrial market seems to be going from strength to strength.

According to JLL’s latest quarterly industrial market commentary the Brisbane leasing market last year recorded its best performance in five years.

Total take-up was 500,000sq m for the year, the highest number since the mining boom market of 2012.

In 2017 pre-lease activity accounted for only 42 per cent of take-up, compared with 66 per cent the previous year which means stronger demand for smaller, existing facilities.

That situation they say is a reliable indicator of strength the industrial sector across the broader economy.

William Dickinson, 3, with mum Aimee. Picture: Richard Gosling

Rising to the occasion

THERE are plenty of big hearts in the property industry, and two of them are on a money-raising mission.

CBRE’s Matthew Eckford has helped organise the Way for William lunch on Friday at the Blackbird restaurant on Eagle St, and hopes to raise enough money for Gold Coast boy William Dickinson’s leg-saving operation in the US.

He says they must raise an extra $30,000 to reach the target for the operation in February or William, who has a rare limb disorder, will lose his leg.

The lunch includes special guest speakers, entertainment, auction and raffle. Purchase tickets here

Also, in three weeks Colliers International’s Don Mackenzie will set off on a 1000km cycling journey in New Zealand for the 2018 instalment of the Chain Reaction Challenge.

He will travel from Christchurch to Queenstown for children’s charities — Ronald McDonald House and AEIOU.

Don says last year they raised a record $1.15 million and this year they are going for $1.2 million. More details here