The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
LESS THAN 30 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
4 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialStaff WriterTue 14 Feb 17

Savills Fringe Office Report: Quality CBD Styling, Fitout Essential

iStock-502260206_620x380

According to Savills, the Brisbane fringe office market comprises the five precincts - Urban Renewal (Fortitude Valley, Newstead, Bowen Hills and Herston), Inner South (South Brisbane, West End, Woolloongabba, Kangaroo Point, East Brisbane and Greenslopes), Milton, Spring Hill and Toowong and contains approximately 1.2 million square metres of lettable office space. Savills Brisbane Fringe Office Report, below, hones in on these select hubs using past data to assess performance and predict future expectations for these markets.

According to Savills December 2016 Full Floor Report there were 82 full floors available for lease in the Fringe.
Fringe Office Market
The fringe office market saw the completion of Southpoint during the last quarter of 2016, adding 23,800 square metres of stock. The year ahead will see no new stock added, however 2018 will see the addition of two new buildings. Only two office developments remain under construction including Fortitude Valley’s fully pre-committed 900 Ann St, along with Lend Lease’s second office tower ‘K5’ within the King Street redevelopment precinct, which began construction in the last quarter of 2016. At the time of reporting, Aurecon remain the only tenants to have precommitted to K5, having agreed to lease around 40 percent of the end office space. Both due for completion in 2018, the two buildings combined will add approximately 35,000 square metres to the Urban Renewal precinct, which continues to attract the greatest tenant demand and subsequently the highest office occupancy levels of all the precincts within the Fringe office market.

The below table shows projects under construction and those that may proceed in the medium-term:

Sales Activity
Savills have recorded approximately $846 million worth of office transactions in the 12 months to December 2016 in the Fringe area. This is up 11 percent from $759 million in the previous year, and up on the five year average of $692 million. During the same period 30 properties were sold, down from the previous year of 39, and up on the five year average of 25.

The 'Urban Renewal' precinct continues to record the greatest volume of sales activity during the 12 months to December 2016 with $509 million worth of office transactions, contributing to 60 percent of total sales for the period. This is down on the previous year of $627 million, yet up on the five year average of $401 million.
Outlook
In line with the CBD, the Fringe office market looks to have turned a corner with improved leasing activity over the 2016 calendar year. Looking forward it is expected that this level of tenant demand will slowly gather momentum with flight to quality remaining the predominant trend. This may encourage developers to begin to consider office development projects as the residential market reaches its peak. With little new stock due for completion in the next two years, occupancy levels are expected to continue to improve.

Given the amount of office space still available across metropolitan Brisbane, smaller tenants in particular are likely to continue to take advantage of the competitive rental environment in the CBD with quality fitout a key consideration

ResidentialOfficeAustraliaBrisbaneReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy on the Sound of Cannon: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
View All >
Sponsored

HCP: Real Projects, Real People, Real Returns

Partner Content
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy on the Sound of Cannon: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
Sherpa South Brisbane DA hero
Development

Sherpa Shifts Gaze from Beaches to Brisbane’s ‘Aria Territory’

Phil Bartsch
The Gold Coast-based developer has put its foot on a South Brisbane site and plans a 28-storey residential play…
LATEST
Finance

HCP: Real Projects, Real People, Real Returns

Partner Content
5 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy on the Sound of Cannon: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Sherpa South Brisbane DA hero
Development

Sherpa Shifts Gaze from Beaches to Brisbane’s ‘Aria Territory’

Phil Bartsch
3 Min
Singapore’s Furama Hotels reportedly picked up the Skye Suites for $68 million amidst an Australian acquisition spree.
Hotel

Sale of Sydney’s Sky Suites Year’s Biggest Hotel Deal

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/savills-fringe-office-report