Less than two months after lodging a development application, Charter Hall and Investa Commercial Property Fund’s $650 million proposal has been approved by the Brisbane City Council.
The decision was made public on Friday, as rumours abound that the sought-after 40,000sq m Suncorp lease was finalised at Mirvac’s 80 Ann Street tower.
Charter Hall and Investa’s 360 Queen Street and Mirvac’s 80 Ann Street were reported to be the remaining projects left in the race to secure Suncorp’s new Brisbane CBD headquarters. Suncorp’s requirement was for up to 40,000 square metres – the largest leasing deal in Brisbane this year.
Charter Hall also announced this month that it had secured a new 15-year long term lease with QSuper at its Brisbane Square Tower. The superannuation fund had previously planned to move into Charter Hall’s Brisbane Square Tower 2 until Brisbane City Council kiboshed the application, placing a restrictive planning instrument on the site at Reddacliff Place.
The newly-approved development will add a further 50,000sq m to Brisbane’s recovering office market. The building is located within Brisbane’s so-called “golden triangle” – the Eagle Street, Riverside Place precinct.
The joint venture acquired the 2,147sq m site in June 2017 for $53.75 million. The three buildings, set to be demolished, were previously owned by embattled mining magnate Clive Palmer.
The latest Brisbane office market research, BIS Oxford Economics’ Brisbane Commercial Property Prospect 2018-28, suggests that despite recent positivity, the Brisbane office market recovery will be slow, with “flight to quality” offerings absorbing demand first.
The economic forecaster said that tenants are focusing on efficiencies over expansion of space with a preference for downsizing, while co-working space operators fill the remaining gaps in the office space markets.
Other than Suncorp, the Australian Taxation Office and the Queensland government are among major tenants currently on the hunt for new space, with the Australian Financial Review reporting that software company TechnologyOne is choosing between two options for its headquarters in Brisbane’s fringe markets, looking to secure up to 14,000sq m of space.
Developments vying for these major leases include Shayher Group’s under construction 42-storey Brisbane Quarter tower, Mirvac’s new scheme at Ann Street, QIC’s four-building project at Mary Street, ISPT’s Regent Tower and AsheMorgan’s Midtown Centre.
Despite no tenant pre-commitments being announced, construction is slated to commence on 360 Queen Street in the first half of 2019.