Charter Hall and Investa have secured Herbert Smith Freehills to a Premium grade office under construction at 360 Queen Street.
The law firm has signed up for 4700 square metres – or just over 10 per cent of the (45,000 sqm) 33 level building for an initial 10 years; the tower is scheduled for completion in 2025.
The occupier will relocate from Dexus’ 480 Queen St – about 300 metres up the road, but also in the city’s revered Golden Triangle.
“We’re thrilled to have secured a spot in Brisbane’s newest Premium-grade building,” HSF managing partner, Brisbane, Matthew Fitzgerald, said.
“By moving to 360 Queen St, we have the opportunity to create a vibrant new workplace designed to enhance the experience of our people as we continue to deliver outstanding results for our clients,” he added.
Brisbane CBD office vacancy surged into the double digits during COVID but fell 100 basis points to 12.9pc in the six months to January, 2023, according to the Property Council of Australia’s Office Market Report.
Office filling up
The only Premium grade office under construction in Brisbane this cycle, 360 Queen St is being delivered, and will be held, by the Charter Hall Prime Office Fund and Investa Commercial Property Fund.
HSF will join rival Hopgood Ganim Lawyers – that tenant pre-committed to 6300 sqm early last year.
Accounting group BDO will be another major occupier – for 9000 sqm.
The complex will also contain a wellness centre, business hub and retail activated laneway (story continues below).
“We are pleased to have secured another high quality tenant customer at 360 Queen St, which will set a new benchmark for office in Brisbane, due to its high sustainability credentials, location and workplace experience,” CPOF fund manager, Miriam Patterson, said.
“Leasing momentum for early pre-commitments further supports our thesis that tenant demand will continue to bifurcate the market leading to high occupancy levels in modern buildings,” she added.
The lease deal comes four weeks since Charter Hall and Abacus sold the Brisbane Club Tower at 241 Adelaide St to Aviator Capital for just over $70 million – or 10pc more than the ($63.5m) price it paid in 2021.
QIC, meanwhile, in March unveiled plans for a 40 level, 45,000 sqm office as part of the Albert St over-station development.
Short supply: developer
Hutchison Buildings is developing 360 Queen St, expected to have an end value of c$800m.
“New office space is scarce in the heart of Brisbane’s CBD, especially along Queen St, providing a key drawcard for occupiers considering their future office premises,” ICPF fund manager, Brendan Looby, said.
“The office floors offer many positive attributes including efficient typical office floors of 1500 sqm plus, which are oriented to maximise aspect,” he added.
“Upon completion, this asset will further enhance the quality of ICPF’s CBD office portfolio, ensuring it remains attractive to both occupiers and investors,” according to the executive.
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