Brisbane July 16, 2011
– The Brisbane office market is experiencing a resurgence with a spike in rental activity as tenants lock in longer leasing terms as a result of tightening vacancies according to Brookfield who has leased over 14,000 square metres of space in the past 18 months in the State.
Brookfield has three commercial assets all located in Brisbane CBD’s ‘Golden Triangle’ totalling 76,921 square metres including 10 Eagle Street, 240 Queen Street and a jointly owned building with Dexus Property Group, the ANZ Centre at 324 Queen Street.
Brookfield has now leased more than 16,000 square metres during the last six months of this year, with tenants including Henry Davis York, AMEX, Talisman and ASIC.
324 Queen Street building offers over 20,462 square metres of lettable area across 26 levels and has recently been submitted to independent review of its services, qualifying it as an A-Grade building. Brookfield and Dexus have carried out extensive refurbishments to the podium, facade and some services with plans for further upgrades of the foyer and the lifts.
“324 Queen Street is an example of a building that attracts tenants because of our commitment to ensuring that it remains high quality,” said Kurt Wilkinson, Chief Operating Officer, Brookfield Office Properties.
10 Eagle Street will also see extensive refurbishment with $4 million being invested in the third quarter of 2011 on upgrades to the lifts. It is expected that further refurbishment to the foyer and retail will take place at the end of the year and this has similarly generated new leasing activity.
“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,” said Mr Wilkinson.
The overall vacancy rate reduced to 7.9 per cent at the end of the first quarter of 2011 according to Jones Lang LaSalle Research, with even tighter conditions in the Premium and A grade sectors.
According to Brookfield 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,” said Mr Wilkinson.
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About Brookfield Asset Management
Brookfield Asset Management Inc., focused on property, power and infrastructure assets, has over US$150 billion of assets under management and is listed on the New York and Toronto Stock Exchanges under the symbols BAM and BAM.A, respectively, and on NYSE Euronext under the symbol BAMA.
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