Riverfront Brisbane CBD Development Site Hits the Market

One of the only remaining major development sites in Brisbane’s CBD, 309 North Quay, is set to be brought to market for the first time in nearly 20 years.

The property, which long housed Triple M and Hit 105, currently offers 14,049sq m of net lettable area across multiple buildings on 6,436sq m of land strategically positioned overlooking the Brisbane River and within Brisbane’s highly-anticipated North Quarter precinct.

Knight Frank’s Justin Bond and Ben McGrath, along with Jason Lynch and Don Mackenzie of Colliers International, have been appointed to run the expressions of interest campaign, with the property to formally hit the market in September.

Bond said the opportunity provided investors and developers with a rare opportunity to secure one of Brisbane’s only remaining major CBD development sites.

“With more than 260 metres of high-exposure frontage, the potential to develop multiple assets on the site is a significant point of difference and is an opportunity that hasn’t been offered to the market in several years,” he said.

“The property has incredible redevelopment potential considering the scale and position it occupies, as well as its favourable town planning provisions, allowing a range of uses and development height of 274 metres. ”

“While its use could remain commercial, the site – or part of it – also has potential for other uses including residential and short-term accommodation, such as a hotel.

“We foresee that it could become a mixed-use development, for which demand would be strong.

“Brisbane’s apartment market has shown a resurgence recently, with values forecast to increase by five to six per cent over the next few years, and only 10 per cent of stock in the inner city’s development pipeline will be in the CBD, providing limited competition for well-developed stock.

“Demand for hotel rooms is also evident across multiple consumer bases, with international visitor numbers increasing by 11.5 per cent over 2018, while business travellers increased by 13.5 per cent.

“Queensland's burgeoning tourism sector is outperforming both New South Wales and Victoria with total expenditure exceeding $23.5 billion annually.”

Bond added that the timing for the eventual purchaser was ideal if a commercial component was developed, with more than 350,000sq m of office tenant expiries set to hit the market between 2021 and 2024.

“Any future commercial development at 309 North Quay would be able to target this market for a pre-commitment,” he said.

“The property’s current configuration also allows for the tenancy profile to be repositioned in the meantime to create valuable holding income.”

Colliers International national director Jason Lynch said the future for Brisbane was extremely positive, particularly with major infrastructure projects underway or planned, and 309 North Quay would be a direct beneficiary.

“Key city-shaping projects including Cross River Rail, Brisbane Live and Brisbane Metro are planned to be situated within 350 metres of the property,” he said.

“These projects are set to have a transformational effect on the corporate landscape of Brisbane, drawing tenants away from the traditional Golden Triangle precinct towards the rejuvenated North Quarter.”

Lynch said the rarity of such a large site in an Australian CBD would generate considerable enquiry from both domestic and offshore groups.

“Buyers will be looking to capitalise on the rebounding Brisbane office market and value proposition compared with the southern markets of Sydney and Melbourne, including for both the commercial and residential markets,” he said.

“The lease structures for the property allow redevelopment to commence from 1 July 2020, enabling purchasers to undertake a project in the near term and capitalise on the next wave of tenant demand within Brisbane’s CBD driven by a declining vacancy rate and positive employment growth forecasts.

“A mixed-use project with a residential and hotel component would also benefit from continuing population growth in South East Queensland, with demand for housing set to strengthen in the coming years, particularly with lower supply in the apartment market.”

The international expressions of interest campaign for the property at 309 North Quay will close on Thursday, 17 October 2019.

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