The Brisbane office market is holding steady despite lockdowns with Queensland Urban Utilities secured as the anchor tenant for a new $375-million tower in Fortitude Valley.
The water authority will occupy 6015sq m over three levels for its headquarters, in the Chinatown Mall office development at 31 Duncan Street.
Office occupancy in Brisbane have oscillated between 61 and 63 per cent since the end of 2020, according to the latest Property Council of Australia data.
This compares to Sydney at 50 per cent, Melbourne at 35 per cent and Canberra at 65 per cent for the week of March 22-29.
The developers of the commercial tower above Chinatown Mall, Tribune Properties and LKM Holding’s Tim Mahony and Andrew King, hope the development will “supercharge” the valley’s daytime economy.
Hutchinson Builders are expected to begin building the 17-storey development designed by Nettleton Tribe Architects in the coming months for a late 2022 completion.
The development comprises more than 25,000sq m of commercial space, 464 car parks, a landscaped roof terrace, running track and gym, end-of-trip facilities and Covid-safe touchless accessories.
Tribune Properties and LKM Holding acquired the site in 2017 for $64 million, bettering more than 200 interested parties after an international expressions of interest campaign by CBRE.
This is not the first time they have redeveloped a carpark in Brisbane: Their 53 Albert Street property recently sold for $250 million.
The nightlife precinct of Fortitude Valley is attracting plenty of interest for office developments, including Cornerstone's 28-storey tower next to the McWhirters building, Empirica Developments' residential-turned-office development and Zagame's nine-storey office building on James Street.
Silverstone Developments also recently secured approval for a 12-storey commercial tower at the Fortitude Valley PCYC.