Brisbane CBD office leasing up as market confidence grows

A full floor in a premium Brisbane CBD office building has been leased as market confidence continues to grow.

Wealth management group Ord Minnett will have a new home following its commitment to 1,243sq m of space – equating to the whole of floor 34 – in Riparian Plaza at 71 Eagle Street, owned by Bloomberg Incorporation Limited.

The deal, which has seen the tenant sign up for space for an initial period of 10 years, was negotiated by Daniel Byrne of Knight Frank, acting on behalf of Ord Minnett, and Campbell Tait of CBRE, who was representing the landlord.

Ord Minnett will relocate from 10 Eagle Street, with the move designed to cater for its expansion.

Mr Byrne said the transaction signified a resurgence in confidence in the Brisbane CBD office market.

“For the past 18 months tenants have weighing up what the office environment of the future will look like,” he said.

“With the ongoing lockdowns across the country, corporations are now understanding the importance of work-life balance, and flexible working will undoubtedly continue to be integrated within the workplace model.

“Despite this, companies still need plenty of office space, with the majority of employees opting to spend most of their week in the office environment.”

“We are seeing tenants increasingly looking to improve upon the quality of their office space to attract employees back to the office.”

Mr Byrne said Ord Minnett, in committing to space in Riparian Plaza, had taking a long-term view on the future of their office environment.

“Ord Minnett choosing Riparian Plaza for its new home is reflective of the ‘flight to quality’ trend tenants have continued to demonstrate throughout COVID,” he said.

“The exceptional presentation of the premium-grade building along with the uninterrupted views cemented the final decision for the tenant.”

Mr Tait said the 53-storey Riparian Plaza was a riverside building situated in the CBD’s financial district of the Golden Triangle, and is considered one of Brisbane’s most prestigious and prominent skyscrapers.

“The building offers high-quality modern office accommodation, with advanced technology and is close to amenity including public transport, retail and restaurants,” he said.

“The landlord has continued to invest heavily within the property, including pandemic responsive initiatives ranging from contactless bathrooms and lift controls, to high grade air filtration systems and protocols including daily complete air purgation cycles.

“This has resonated well with tenants like Ord Minnett who are seeking high quality office accommodation within Brisbane’s core financial precinct.”

The latest Knight Frank Brisbane CBD Office Market Report found transaction levels in the Brisbane CBD’s office market were lifting in terms of both the investment market and leasing market, with the strong rebound and resilience of the economy giving buyers and tenants the confidence to act.

Smaller tenants have dominated leasing activity over 2021 with 83% of completed deals tracked by Knight Frank to date being sub-500sq m, equating to more than 140 deals, excluding renewals.

A further 5% of deals by number were in the 500sq m to 1,000sq m range, while 11% were greater than 1,000sq m, with that segment of the market increasing relocation activity.

The report found leasing activity is well on track to exceed the constrained levels of 2020, with larger commitments to grow.

In recent months a number of appointments for future occupations for larger tenants have been made, with relocation decisions by companies including CUA and APA expected to lift confidence across the market and engender greater activity.