Brisbane’s fringe office market continues to attract capital amid tightening supply and rising tenant demand
In a strong show of investor confidence in Brisbane’s fringe office market, a modern commercial asset in Southgate Corporate Park has transacted for $22 million in an off-market transaction to Natgen.
In a deal brokered by the Colliers team of Sam Arkell and Hunter Higgins, the three-storey building located at 38 Southgate Avenue, Cannon Hill, was acquired by Natgen from Trilogy Funds.
The high-quality asset comprises 3,493sqm of net lettable area on a 2,054sqm site, and is fully leased to a strong tenant mix including Compass Group, Orica Australia, and Mindray Medical. The building features a 5.0-star NABERS rating, adaptable floor plates and 81 car bays.
Colliers Capital Markets Associate Director Sam Arkell said with a landlocked position and finite developable land remaining in the precinct, Southgate Corporate Park saw strong market interest due to the expectation it would benefit from long-term rental growth and tenant retention.
“This transaction underscores the depth of capital targeting well-located, income-producing assets in Brisbane’s fringe office market,” Sam Arkell said.
“Southgate Corporate Park continues to attract strong tenant and investor interest due to its connectivity, quality infrastructure and limited future supply.
“What we’re seeing is a real shift in tenant priorities — access to transport, lifestyle amenity, and value-for-money are pushing demand beyond the CBD core.”
Colliers Investment Services National Director Hunter Higgins said this sale reflected a broader trend in the Brisbane fringe office market, which has outperformed other major capital city markets in net absorption.
“Brisbane’s fringe office market is benefiting from structural tailwinds, with demand increasingly driven by locally headquartered businesses,” Hunter Higgins said.
“As businesses continue to favour flexible, well-connected office locations, Brisbane’s fringe remains a standout performer nationally.
“With infrastructure like Cross River Rail and the Olympics precinct reshaping inner-Brisbane, we expect the fringe market to remain in strong focus over the next decade.”
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