New 10-storey, cutting-edge office tower in Newstead responds to city-fringe demand

A developer has sniffed the wind and decided the time was right to speculatively build an office tower in a growing fringe hot spot.

An artist's impression of Silverstone Development's 10-storey office building at 14 Stratton St, Newstead.

A BRISBANE-based developer is capitalising on renewed demand for the city-fringe with plans to speculatively construct a cutting-edge 10-storey office building.

Silverstone Developments is seeking to complete the 9000sq m office building at 14 Stratton St, Newstead, by the third quarter of next year.

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The site was previously earmarked for Stage 5 of Metro Properties’ Newstead Central development and had approval for a 20-storey apartment tower.

Silverstone gained control of the site and the Brisbane City Council recently approved the Rothelowman-designed office tower.

An artist's impression of Silverstone Development's 10-storey office building at 14 Stratton St, Newstead.

Silverstone’s managing director Troy Daffy said the company had been watching the office market in the area very closely over the past 24 months and had seen an opportunity.

“The Fortitude Valley precinct was hit hard with the downturn in the mining sector, which created a high level of vacancies in A-grade buildings in the precinct,” he said.

“As a result, commercial building owners had to really meet the market on rates and incentives to back fill their buildings.

“But moving in to the second half of 2019, we have finally reached a stage where Fortitude Valley and Newstead have the lowest vacancies rates in the A-grade inner city market, and we are starting to see some rental growth and tightening of incentives.”

Mr Daffy said Silverstone will settle on the site at the end of July and wants to start construction as soon as they take possession.

Colliers International’s Joseph Dean, who is working on the leasing campaign with CBRE, said the market was hungry for a quality boutique project on the Fortitude Valley-Newstead precinct.

“The project is unique with 1000sq m floor plates, great carparking and the highly sought proximity to the amenity of Gasworks and James St,” he said.

“Tenants will be drawn to the super-sized end-of-trip facilities with an adjacent lounge area, an internal espresso bar in the foyer as well as a roof top terrace and formal meeting rooms to cater for business’ elastic nature, again all free of charge.

“We believe it will be very well received for tenants looking to get into something unique.”