Metro Property has offloaded the final undeveloped site of its five-tower Newstead Central development to fellow Brisbane developer Silverstone.
The fourth stage of Metro’s 800-apartment project was completed in mid-2018, with news that real estate agents were offering discounts of up to 20 per cent on its stock.
Moving away from an unsteady pocket of Brisbane’s residential market, Silverstone’s proposal has slashed 9-storeys from Metro’s final tower, submitting plans for a commercial scheme in its place.
The $80 million tower will offer about 8000sq m of net lettable area and small retail tenancy on the ground level.
The basement structure of the tower has already been built as part of Metro’s development, allowing Silverstone to proceed with a carpark already in place at the site.
“The opportunity we’ve come across is quite unique,” Silverstone managing director Troy Daffy said.
“The site is fully-serviced, so from a cost, risk and delivery [perspective] it’s a great outcome.”
Daffy said an underserviced CBD fringe office market for tenants seeking an A-grade offering prompted Silverstone to pursue a commercial scheme.
“We saw a large hole in the delivery of new A-grade buildings over the next 42 months.
“Along with tightening vacancy rates that are now well into the single digits and improving tenant demand, there is a lot of opportunity [for us] in this space.”
The “flight to quality” theme in Brisbane’s office market saw a significant uptick in activity in Brisbane’s fringes over the second half of 2018, with some high-profile sales in Brisbane’s inner-north.
Growthpoint snapped up Bank of Queensland's headquarters on Skyring Terrace in Newstead for $250 million in November, while investment giant Centuria picked up 825 Ann Street and 100 Brookes Street in Fortitude Valley.
Consolidated Properties submitted a development application for a $250 million office building on Ann Street in late December.