Workers, shoppers still shunning Brisbane city centre post Covid, report finds
Brisbane’s retail and office sectors are yet to recover to pre-Covid levels with vacancy rates in the double digits, a report reveals.
BRISBANE’S retail and office sectors are yet to recover to pre-Covid levels as vacancy rates remain in the double digits, but foot traffic is back and ‘destination workplaces’ are the new normal.
A report measuring the health and vitality of five, key inner-city areas in the past year reveals a bounce-back in the tourism, education and residential space, with international students returning and CBD occupancy rates at more than 70 per cent.
Released today and prepared by Urban Economics for the Committee for Brisbane, the Inner City Vitality Report gives Brisbane’s city centre — comprising Brisbane CBD, South Brisbane, Fortitude Valley, Spring Hill and Woolloongabba — a score of 5.7 out of 10.
The score is based on employment and daytime populations, occupancy rates, business growth and level of activity, and is an improvement on the scores of 5 in 2021 and 4.8 in 2020.
Committee for Brisbane CEO Barton Green said the city centre was showing signs of shaking off the lag effects of the pandemic.
“Critically this year’s report, our fifth, tracks how Brisbane’s inner city has performed as communities and businesses learn to live with the Covid-19 virus,” Mr Green said.
“It highlights a bounce-back effect among residents, visitors, and businesses with a sense of urgency for enjoying experiences within the tourism, and education and residential sectors.
“And while retail and office sectors are yet to recover to pre-Covid-19 levels, they are showing some signs of renewal and repair.”
CBD retail vacancy rates continue to struggle, with commercial real estate firm, CBRE, estimating an overall vacancy rate of 18.9 per cent — up 6.2 percentage points on the previous year.
CBRE research suggests retail foot traffic has recovered in recent months to nearly 90 per cent of pre-pandemic levels.
Brisbane CBD’s commercial office market vacancy rate is around 14 per cent, according to the Property Council of Australia.
It is not projecting any new office space to come online in Brisbane’s CBD in the second half of 2022, but there is a significant amount of supply in the pipeline.
The report found the rise of remote working post Covid had resulted in a shift in expectations for commercial office space, leading to the creation of ‘destination workplaces’ — hubs for connectivity, resource sharing, networking, and professional development.
Since the 2016 Census, the number of people living and working in the inner city has increased, gaining 36,000 more employees and more than 16,500 additional residents.
Future proposed residential developments include a state government Build-to-Rent project at 50 Quay St, which will provide apartments specifically for rent with a high proportion offered at below market rates.
Major new infrastructure and accommodation facilities will continue to boost the CBD’s tourism sector, including the proposed Brisbane Live precinct, four more hotels as part of the Queen’s Wharf redevelopment, and a new five-star hotel has been approved for the owners of Queen’s Plaza.
Outside of the CBD, the report found Fortitude Valley is returning as one of Brisbane’s most popular retail hubs, with the James Street precinct recording an extremely low retail vacancy rate of just 2 per cent and the largest pipeline of proposed developments.
“The Valley has clearly diversified to cater to a more upscale, “daytime” market.
While areas around Brunswick St appear to be struggling, the ongoing redevelopment of the Valley Metro and 31 Duncan St will contribute to the revitalisation of the area and attract more shoppers to the area”, the report said.
