Stagnant interest in Toowoomba office space continues: HTW

Low demand for office space in Toowoomba continues, according to report from Herron Todd White (HTW).

Leasing demand for commercial office accommodation in Toowoomba continues to be subdued.

The valuer firm stated that this has resulted in limited growth in rentals over the past three years and has also resulted in the introduction of some lease incentives to secure tenants.

Rents can vary from under $100 per square metre gross (often poor quality inner CBD first floor tenancies with no car parking or PWD access) to $400 per square metre gross for modern premium accommodation with good car parking the report noted.

A small premium can sometimes be achieved for medical suites, especially in the precinct surrounding St. Vincent’s Hospital.

There were no new major office building developments in Toowoomba during 2017 or early 2018.

Any leasing demand during this period has been fulfilled by existing stock.

There are several vacant commercial sites in Toowoomba ready to be developed however the reduced leasing demand has delayed most projects according to the valuers at HTW.

The valuers forecast "it is unlikely that any project will proceed in 2018 unless significant lease pre-commitments can be secured".

"The projects will also likely need to achieve market leading rentals to make projects feasible."

A new office building has been proposed on the corner of Campbell and Raff Streets in the northern fringes of Toowoomba’s CBD.

The building is to be multi-levelled and will contain a food/café tenancy on the ground level.

This project appears to be driven by multiple owner occupiers, the report notes.