Record deal sets new benchmark in Brisbane CBD strata office market

A multi-tenant Brisbane CBD office investment has sold to a Sydney-based buyer in a deal surpassing the previous biggest settled strata transaction of the year by $2.5 million.

Tony Wang from Colliers International outside 108 Margaret St, Brisbane.

ONLY a few weeks after its biggest transaction of the year settled, Brisbane’s strata office market has already hit a new level.

A Sydney-based buyer has swooped on a multi-tenanted CBD office investment comprising four strata-titled units at 108 Margaret St for $7.5 million.

It surpasses the previous biggest settled strata transaction of the year by $2.5 million.

The interstate purchaser of the 1905sq m of net lettable area at 108 Margaret St is an interstate education operator.

Its acquisition comprises 168sq m on the ground floor, 595sq m on level 1 tenanted by Colleges Australia International, 562sq m on level 2 occupied by QIBA Pty Ltd as well as 168sq m on the ground floor and 580sq m on level 3 both leased to RAM Optics.

The new benchmark transaction was negotiated by Tony Wang and Sam Biggins from Colliers International.

“The purchaser sought to capitalise on the low interest rate environment and future-proof their real estate needs by acquiring the premises,” Mr Wang said.

Brisbane’s strata office market has hit a new level for the year.

Mr Biggins said the acquisition would provide the buyer with flexibility to expand within the building as the remaining leases expire over the next few years.

“Considering their target market, it is a great opportunity to remain within the building as all of the strata units are situated underneath the Margaret St Unilodge development and within the Margaret St and the QUT education precinct,” he said.

Last month, a private Sydney-based investor snapped up 1374sq m of strata office space on level 2 of the mixed-use Oxygen building at 170 Leichhardt St, Spring Hill, in a $5 million deal also brokered by Mr Wang and Mr Biggins.

It was purchased with a seven-year lease in place to Imagine Education Australia, which also holds a three-year option.

“Long-term investors are backing the strata market but sales to owner-occupiers are also on the rise as the leasing market continues to improve in combination with record low interest rates,” Mr Wang said.

“The major infrastructure boom in Brisbane has had a very positive impact on business and buyer sentiment.”