Global real estate investment manager Cromwell Property Group believes the South East Queensland office market remained 'sluggish' and 'challenging', despite a number of recent leasing deals.
The Group announced today it had signed one of the largest leases in Brisbane in recent years, with the Queensland University of Technology (QUT) renewing its 9,374 square metres office space in the inner-city Kelvin Grove Urban Village.
Cromwell Head of Property Damian Horton said the recent lease and renewal activity demonstrated the value of Cromwell’s active management, well-located and refurbished office solutions regardless of broader market conditions.
“Despite continued challenging leasing conditions, we have seen increased enquiry levels across a number of our buildings in the Brisbane and Gold Coast markets during the first quarter of the year which is an encouraging sign,” Mr Horton said.
“The lease to QUT is one of the largest signed within the inner-city fringe over the last few years, so it’s pleasing to see that with the right offering, leases of this size can be finalised in the current market. Synergy is arguably the best office building in the precinct and is well positioned within metres of the QUT Kelvin Grove campus.
“We are noticing value, quality and location are the determining factors in tenant decisions to lease with Cromwell,” he said, despite an ongoing challenging office market.
QUT's new five year lease commences in November 2016, and covers the existing lease of four floors in the ‘Synergy’ building located on Musk Avenue.
Cromwell has also announced LogiCamms as the latest firm to commit to the Cromwell owned and managed 200 Mary Street in the Brisbane CBD. The engineering firm signed a five year lease for two floors totalling 1,440 square metres in the recently renovated 19 story office tower.
On the Gold Coast, Wyndham Vacation Resorts Asia Pacific has extended its 4,500 square metre lease at the Bundall Corporate Centre by a further three years, through to 2021.