Griffith University touted as stopgap tenant after Myer leaves flagship Queen St store
A shock contender has emerged to take over some of the space left by department store Myer after it vacates its flagship Queen St location.
QLD Business
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A leading university has emerged as a possible tenant to take over the part of the large space in the Brisbane CBD left by department store giant Myer when it leaves its flagship Queen Street Mall store.
The retailer has been the anchor tenant of the Myer Centre since it opened in 1988 and occupies five levels or just over 28,000sq m making it the largest retailer by far in the CBD.
Industry sources say Griffith University, which currently has a 10,000sq m to 15,000sq m requirement for a CBD campus, could be a “stopgap” tenant before seeking a larger and more permanent address.
A Griffith University spokesman said any CBD campus would focus Business, Law and IT, as well as a range of postgraduate
“The expression of interest closed in December last year. The University is assessing the large number of market proposals received and no decisions have been made,” he said.
There is also speculation that joint owners Vicinity Centres and super fund giant ISPT – which solely owns the long-vacant Regent Cinema site on the mall – may elect to redevelop the 1.274ha site that includes the facades of four historic buildings, the former Barry & Roberts building, the Carlton Hotel, the New York Hotel and the Telegraph Co Building.
Despite the uncertainty, Queensland general manager of property advisory Macroplan Mark Courtney believes Myer’s decision was a “golden opportunity” to redefine the heart of the city in the lead-up to the 2032 Olympics.
“It’s an exciting opportunity to create a significant landmark on the site rather than keep it as is,” he said.
“The Casino and integrated resort will be a major tourism attraction where people will hang out and they will also want to go to South Bank but what else is there in the city to lure them?”
Mr Courtney said Tokyo Midtown – which he described as a “beast of a tower” – could be an example to follow with its mix of quality office, residential, commercial, hotel, and leisure space.
“Myer has such a big footprint and it will require a lot of visioning, But what we don’t have in the CBD is a cluster of quality institutions packed into the one area,” he said.
“Wouldn’t it be great to showcase indigenous art and culture, local artists, museums, food and beverage with co-working opportunities and genuine premium offices.
“There is an opportunity to do something to mark the state capital which will be hosting the Olympic Games. It’s an exciting opportunity to do something really special with that site.”
The company confirmed last week that the Queen Street mall store would stop trading at the end of July, and they would search for another Brisbane City site.
A survey by CBRE found in the second half of 2022 the Brisbane CBD recorded 18.4 per cent of retail space vacant – the second highest CBD rate in Australia.
It found that low office occupancy rates because of the Covid-inspired working from home trend, severe weather events and low levels of overseas migration and tourism over the past two to three years created a volatile environment for retailers.
The 380 basis points increase from the first half of 2022 was attributable to shopping centre vacancies with upper-level centre tenancies recording higher vacancy levels as tenants demand prime strip locations.
The expiry of the Myer lease will have a major impact on vacancy figures despite some take up of empty space this year by smaller retailers.
Mr Courtney said the future of retail in the CBD was at a “really interesting point.
“Is coming to the city to shop a real attraction given the high cost of transport and carparking,” he said.
“Perhaps this is an opportunity to mark another chapter in the evolution of the Queen Street Mall.”
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