This article is from the Australian Property Journal archive
BROOKFIELD Office Properties has leased over 16,000 sqm of office space across three properties in Brisbane CBD’s Golden Triangle.
In the last six months Brookfield has signed key tenants including Henry Davis York, AMEX, Talisman and ASIC across 10 Eagle St, 240 Queen St and a jointly owned building with Dexus Property Group, the ANZ Centre at 324 Queen St.
The three properties have a total GLA of 76,921 sqm.
Chief operating officer Kurt Wilkinson said the Brisbane office market has improved significantly over the past year with many mining and resource businesses expanding in the region.
“It’s translating into a tighter market with strong net absorption,” he added.
The overall vacancy rate reduced to 7.9% at the end of the first quarter of 2011 with even tighter conditions in the Premium and A grade sectors, according to Jones Lang LaSalle Research,
In addition Wilkinson said the tighter market conditions have resulted in a trend towards longer leasing terms with tenants committing to longer terms.
“The leases we have signed recently have been for seven to ten years which shows that the upkeep of a building is paramount.
“Tenants are willing to commit to longer leases when they are presented with a building that has been remodelled with new amenities as it shows that the landlord is committed to keeping that building in good condition,” he added.
Meanwhile Brookfield is undertaking a $4 million refurbishment of 10 Eagle St in the third quarter of 2011.
Wilkinson said further refurbishment to the foyer and retail will take place at the end of the year and this has similarly generated new leasing activity.
Australian Property Journal
