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Commercial Confidential: Brisbane property, leasing news and gossip

SOME of Australia’s largest companies are nearing the end of their space race, with over 80,000sq m of requirements in Brisbane nearing the sharp end of the process this month.

SOME of Australia’s largest companies are nearing the end of their space race, with over 80,000sq m of requirements in Brisbane nearing the sharp end of the process this month.

Industry sources say Suncorp is meeting with developers this week in Sydney, with the likely winner for its 30,000sq m to 40,000sq m new headquarters to be 80 Ann St (Mirvac); The Regent in the Queen Street Mall (ISPT); or 370 Queen St (Investa/Charter Hall).

We also understand Technology One with its 12,500sq m requirement will go through the same process in a couple of weeks.

Technology One has not officially revealed its Fortitude Valley/Newstead-focused shortlist.

However market sources say the winner will be out of Charter Hall’s 11 Breakfast Creek Rd; Lendlease’s timber office building at the 25 Kings St in RNA showgrounds; JGL Properties’ site at the Jubilee Hotel’s car park on St Pauls Tce; and Alceon’s campus style proposal at Hamilton Northshore.

We also understand that Westpac’s 6500sq m requirement (it is moving from 260 Queen St) will be between the Riverside Centre (GPT), 175 Eagle St (Charter Hall) and 300 George St (Shayher Group).

The ATO, which has a 24,000sq m requirements, is keeping any preferences under wraps.

Big tenants stay put

MEANWHILE Shell, which had an 8000sq m-plus requirement in the market, will stay put in its long-term branch office at 275 George St in the CBD.

We understand Shell has signed up for another 10 years and has a new fit-out in the tower that was developed by Charter Hall in 2009 and jointly owned by the unlisted Charter Hall Prime Office Fund and Singaporean-based Keppel REIT.

Twelve months ago anchor tenant Telstra also elected to stay put in the 30-level building.

180 Brisbane
180 Brisbane

Staff cuts free up space

LAST week we heard that Origin Energy will slash about 650 jobs from its Brisbane head office to cut costs will impact on sublease space in the CBD.

The gas and electrical supplier is set to move this year from the Coronation Drive Office Park in Milton and other sites and into 16,000sq m over eight floors in Daisho’s 34-level A-grade office tower, 180 Brisbane, in Ann St on a 17-year lease.

Sources say Origin’s decision to slash jobs will put two of its floors in the 180 Brisbane tower on to the sublease market.

ASX-listed Tatts, which has 10 floors in the building, is also expected to put space on the sublease market.

Hotel Urban on Wickham Terrace, Spring Hill
Hotel Urban on Wickham Terrace, Spring Hill

Hotel up for grabs

WITH the hotel sector being one of the tightest held it’s interesting to see the four-star Hotel Urban in Spring Hill on the market,

The 11-storey boutique hotel is expected to be highly sought after, with strong interest already from domestic and international hotel investors, according to Colliers International’s Neil Scanlan and Leo Carne,

After several years of new hotel development applying pressure to the Brisbane hotel investment market, Brisbane has led the way with recent significant room demand increases, contributing to an increase in overall hotel RevPAR (revenue per available room) performance.

“With limited new supply still to open, the market will continue to experience an increase in trading performance,” Neil said.

The Hotel Urban offers 179 rooms and suites, restaurant, bar, swimming pool, gymnasium, and large conference and event facilities. It is on an elevated position with expansive views over the Roma Street Parklands, CBD, and Brisbane river.

The hotel is currently under management by Urban Hotels and is available for sale with vacant possession.

In the year to December 2017 Brisbane’s occupancy rate reached 73.7 per cent, reflecting 2.6 per cent growth on the same period last year. Positive RevPAR growth was also experienced as the market has absorbed recent addition to supply.

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