Office footprint of metropolitan Brisbane slowly expanding into neighbouring suburbs: Savills
Urban renewal projects, such as the RNA Brisbane Showgrounds redevelopment are changing the face of the Brisbane fringe precinct.
The Brisbane fringe office market comprises the five precincts - Urban Renewal (Fortitude Valley, Newstead and Bowen Hills, Herston), Inner South (South Brisbane, West End, Woolloongabba, Kangaroo Point, East Brisbane and Greenslopes), Milton, Spring Hill and Toowong and contains approximately 1.2 million square metres of lettable office space, according to Savills latest quarterly briefings.
There are approximately 135,000 square metres of potential new office stock which could enter the Fringe office market over the next two to three years but for the present, the only office buildings under construction in the city fringe is the Southpoint development and 900 Ann St, totalling around 47,000 square metres.
The table below shows the projects under construction and those that may proceed in the medium term:
Of the two remaining commercial stages planned for the RNA Brisbane Showgrounds redevelopment ‘Kings Street’, K2 remains mooted however construction on K5 is expected to begin in early 2017. In recent months, Lendlease has reportedly secured engineering company Aurecon as a major tenant, who have pre-committed to approximately 6,000 square metres.
The planned 13-level office building K2 remains in early planning stages, with construction mooted to begin mid-2017. Along with K1, the three office towers will total over 50,000 square metres net lettable area.
CDOP7 (Coronation Drive Office Park 7) while still mooted, will be the 7th commercial building within the Milton Office Park with a 12-level commercial tower, including ground level retail and an urban common area. Included in the proposal is the possibility of refurbishing a building (CDOP 09) adjacent to the site.
Tatt’s Group has on sold its 3,254 square metre Newstead site to Charter Hall who plan to build a 15-level commercial building in a joint venture with John Holland.
John Holland have also pre-committed to two floors of the new development which is expected to commence construction in the first half of 2017.
Completion is anticipated to be sometime before 2020, in line with John Holland’s current lease expires in Ann Street.
Urban renewal projects, such as the RNA Brisbane Showgrounds redevelopment are changing the face of the fringe precinct.
Along with numerous residential projects, urban renewal developments bring with them retail and café outlets as well as parks, path- & bike-ways, vastly improving the amenity of the area.
This in turn is making the fringe a more attractive place for businesses to locate.
The overall office footprint of metropolitan Brisbane is also slowly expanding into neighbouring suburbs of the Fringe market, with the likes of the Hamilton Harbour and the Northshore Hamilton Brisbane Technology Park development, offering alternative modern office locations.