The rise of the ubiquitous roof terraces of inner-city Brisbane development proposals may have plateaued as challenging market conditions drive the need to increase yields to make projects stack up.
At least, that seems to be the case in the upmarket James Street precinct at Fortitude Valley on the fringe of the Brisbane CBD.
Revised plans have been filed by Brisbane developer Forme seeking to convert two roof terraces in an approved mixed-use development into six extra office tenancies.
Earmarked for an amalgamated 2587sq m site at 75-85 James Street, the initial plans for the office, retail and dining complex were given the green light by the Brisbane City Council in November last year.
The Richards & Spence-designed scheme also features a central piazza and arcade linking James Street and Southwick Lane at the rear of the building.
Ground and first level retail tenancies totalling 1109sq m would target “high-end” fashion brands, health and wellbeing as well as restaurants and cafes.
Overall, the new plans provide for an additional 335sq m and 605sq m of office space across its rooftop fourth and sixth storeys respectively.
Together with the removal of 155sq m of office space on the fifth storey and 32sq m on the third storey, the changes result in a net gain of 753sq m—increasing the building’s total gross floor area from 6071sq m to 6824 square metres.
A fifth storey roof terrace would cap the smaller north-western portion of the development.
“The decision to increase the floor area of the proposed development has been made in the context of changing market conditions,” a planning report said.
“The changing economic climate in Brisbane, marked by inflationary forces and increasing interest rates, has significantly affected the viability of commercial ventures.
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“Consequently, the applicant has had to re-evaluate the project’s feasibility.
“The inclusion of additional office tenancies plays a crucial role in bolstering the project’s financial viability, ensuring it will be delivered at a time where many other projects are stalled.”
According to the report, the additional office tenancies would be “supported by an increase in demand for smaller scale adaptable office tenancies at the inner-city fringe, which cater to smaller businesses providing local services and creating agglomerate economies focused on creative, technology and knowledge-based industries”.
“The James Street locality is marked by significant expansion and evolution, putting it at the forefront of growth in inner-city Brisbane.”
It added that the council’s strategic focus on inner-city growth “aligns with the broader objective of this project to enhance the liveability and vibrancy of this part of Fortitude Valley by providing for an integrated commercial offering”.
“The proposed changes will enhance the project’s overall viability/feasibility and align it with the changing economic and developmental landscape,” the report said.
The existing approval includes the removal of two pre-1911 buildings at 75 and 77 James Street to other sites, removal and relocation of a pre-1911 traditional house at 85 James Street and continued use of a pre-1947 traditional corner shop.
A heritage impact assessment deemed the proposed development would not impair the prominence of the corner shop and the revised plans would “contribute positively” to the modern commercial local character in James Street.
The application said the revision of the approved development also had resulted in a proposed built form which “provides greater functional capacity and improves the buildings relationship with the street and adjoining residences”.
