Brisbane CBD retail centre to undergo major makeover as part of city revamp

One of Brisbane CBD’s most iconic landmarks is undergoing a multi-million dollar redevelopment. SEE THE NEW LOOK.

Post Office Square is about to undergo a major, multi-million dollar makeover. Picture: David Clark.

ONE of Brisbane CBD’s most iconic landmarks is undergoing a multi-million dollar redevelopment in the hope of transforming the precinct, in the wake of the shock news of department store giant Myer leaving.

Major works have started on Post Office Square to give the city’s best known retail arcade a much-needed makeover amid efforts to redefine the heart of the CBD in the lead-up to the 2032 Olympics.

An artist's impression of the redesign of Post Office Square in Brisbane's CBD. Image supplied.

Global investment manager, LaSalle, purchased the precinct in 2019 for about $95m, in a show of confidence in the Brisbane market.

RELATED NEWS:

Work starts on the $28m facelift of Transport House

Tenants of Brisbane’s Myer Centre push for facelift after department store’s shock exit

An artist's impression of the redesign of Post Office Square in Brisbane's CBD. Image supplied.

Since then, Brisbane has led the capital cities in a post-COVID uplift in CBD office occupancy, prompting the redevelopment of the subterranean arcade linking Adelaide and Queen streets.

LaSalle managing director of development Simon Juniper said the strategy was to breathe new lift into the “old and tired” precinct by offering a mix of new and existing retail and service tenants, extending trading hours, and improving accessibility.

An artist's impression of the redesign of Post Office Square in Brisbane's CBD. Image supplied.

“It’s fair to say all CBDs have suffered from a decline in food and beverage and retail offerings, and what we’ve noticed is that a lot of the food courts have suffered, and we think there’s a real opportunity to provide the market with an offering that doesn’t currently exist right in the centre of Brisbane,” Mr Juniper said.

“What we’ve worked out is in order for these tenants to succeed, they need the right environment.

The new-look hub will offer a mix of convenient, high-quality dining and service options, with negotiations underway with some existing tenants and new tenants also being sought.

“We’re hoping for some exciting, potentially national larger tenants for the Queen Street end,” Mr Juniper said. “At the moment, it’s a very fragmented tenancy profile.”

Post Office Square in Brisbane’s CBD. Image: Josh Woning.

Designed by Arkhefield, the newly refurbished precinct will pay homage to Queensland’s subtropical climate, bringing the outdoors in through biophilic design and earthy finishings, including a ‘green wall awning’ entry statement at the Adelaide Street end.

A development application has also been lodged for a glass lift to be placed at the Queen Street entrance to improve accessibility.

An artist's impression of the redesign of Post Office Square in Brisbane's CBD. Image supplied.

“We’ll extend the trading hours of the centre,” Mr Juniper said. “If we can get the right tenants and create the right atmosphere, trading hours will start to bleed into the afternoon and night.

“Hopefully, this part of Brisbane might become more sustainable and not so dead on weeknights and weekends.

“With Myer closing, it might also push more business down this end.”

The iconic Myer Centre in Brisbane’s Queen Street Mall. Picture: Richard Walker.

The centre will have a net lettable area of 1800 sqm and 24 proposed tenancies, along with a 316-bay basement car park.

Cameron Taudevin from JLL’s retail leasing team said the word was out for new tenants to show interest in positioning themselves in the new-look precinct.

“Post Office Square has been repositioned several times since its inception in 1983 and LaSalle are investing heavily in this redevelopment, committed to future proofing the centre,” Mr Taudevin said.

Fortitude Valley train station. Picture: Jerad Williams.

“Being the geographical centre of the CBD, it already has an immediate existing catchment that we plan to tap into.”

Mr Taudevin said he hoped the centre would encourage a strong day to night offering, which was lacking in that part of the city.

The project is on track to be trading fully again by the end of the year or early 2024.

LaSalle is also behind the redevelopment of the Fortitude Valley railway station.

An artist’s impression of part of LaSalle Investment Management's proposed $500m overhaul of the site around the Fortitude Valley train station.

They have finished the refurbishment of the Transport House office building and the retail thoroughfare, but have hit pause on plans to build 207 apartments and a new commercial office tower on Constance Street.

“Market conditions haven’t allowed us to push the button on that yet,” Mr Juniper said, describing them as “challenging”.

An artist's impression of the redesign of Post Office Square in Brisbane's CBD. Image supplied.

Myer confirmed last week that the Queen Street Mall store would stop trading at the end of July, as it looked for another CBD 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.