Golden gleam in Brisbane CBD’s blue chip office precinct as new decade dawns
Strong take up of prime CBD office space over the past 12 months and constrained new supply is expected to push leasing rates in Brisbane’s prestigious Golden Triangle to a new level.
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BRISBANE’S Golden Triangle precinct — home to the city’s most prestigious corporate addresses — is set to gain some added gleam in 2020.
Strong take up of prime CBD space over the past 12 months and constrained new supply is expected to push leasing rates in its blue chip office towers to a new level.
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CBRE’s state director of office leasing, Chris Butters, said vacancy had tightened significantly in the precinct bounded by Queen, Edward and Eagle streets.
“The Golden Triangle outperformed the broader market in 2019 with premium gross face rents surpassing the $900/sq m mark and likely to break through the $1000/sq m rate in 2020,” he said.
“With no new supply due over the next 12 months, we forecast further rental growth as active inquiry jostles for the last remaining trenches of available space.”
Mr Butters said the Brisbane office sector was on the rise with market conditions improving on the back of a strengthening resource sector, the kickstart to key infrastructure projects and metropolitan occupiers relocating into the CBD.
“In 2020, the return to growth is set to be underpinned by a broad base of industries, with the resource sector maintaining its appetite for growth in conjunction with dollar sensitive sectors such as tourism and education, with the lower Australian currency aiding growth.”
According to Knight Frank’s Queensland joint head of office leasing, Mark McCann, the positive outlook for the CBD market is forecast to continue driven by strong demand and no new supply over 20,000sq m coming on line until 2021.
“Only Midtown Centre, which will be completed in the first half of 2021 and 80 Ann St (the Suncorp HQ), which will be finished in the first half of 2022, are under construction as at today,” he said.
“Vacancy rates in the CBD are on the decline but in particular, the prime sector of the market has experienced a strong take up of space in 2019 resulting in slight rental growth and improvement in commercial terms.
“While co-working in the first half of 2019 was the growth sector in respect to occupancy demand, major infrastructure projects like Cross-River Rail are continuing to have positive impacts on the office market in the short to medium term.
“The resource and mining sector is also on the improve and impacting demand, and both the Commonwealth and Queensland governments have provided solid levels of take up.”
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