A high-profile Brisbane CBD office building situated on perhaps the most prominent retail corner of the Brisbane CBD and anchored by the Commonwealth Bank of Australia has hit the market.
240 Queen Street will be taken to the market via an International Expressions of Interest campaign run by Knight Frank agents Justin Bond, Ben Schubert and Neil Brookes, in conjunction with JLL agents Paul Noonan, Seb Turnbull and Kate Low on behalf of Brookfield.
The 27-level A-grade building at 240 Queen Street has 27,632sqm of net lettable area, made up of 24,922sqm of office space and 2,710sqm of retail space, with 94 car bays.
The property occupies a 2,127sqm site on the corner of Queen Street and Edward Street at the entrance to the Queen Street mall and surrounded by Brisbane’s premier luxury retailing precinct.
The ASX-listed Commonwealth Bank of Australia has occupied the three levels of retail space in the building since the asset was constructed by the bank. CBA’s current lease runs until September 2029.
The asset has a WALE of 4.18 years and is approximately 93 per cent occupied, with other major tenants occupying the building including the Commonwealth of Australia (ASIC), the original building architects Conrad Gargett, Multiplex, Hall Chadwick and Christie Spaces.
Mr Bond said historically, on average there was less than one opportunity per year to acquire a Brisbane CBD institutional-grade asset of the size and value of 240 Queen Street, hence significant buyer interest in the offering was expected.
“Due to the rarity of the offering, in addition to its market-leading fundamentals including location, quality and income security, we expect strong significant domestic and international buyer interest in the asset,” he said.
“CBD multi-tenant office assets with a four year-plus WALE are rare and highly sought after and this building also offers future upside with the potential to transform the retail component post CBA’s lease expiry to cater for multiple luxury retail tenancies.
“Confidence is high in Brisbane with the city’s significant growth trajectory being undeniable, with strong historical rental growth, especially in the premier office precinct The Golden Triangle further enhanced by approximately $17 billion worth of infrastructure developments.”
JLL’s Mr Noonan said the asset occupied an unrivalled corner position at the Queen Street and Edward Street intersection at the entrance to Brisbane’s Queen Street Mall.
“This property gives buyers a chance to acquire a premier office building with undoubtedly the best retail position in the Brisbane CBD,” he said.
“It benefits from being the most highly populated corner location in the city, surrounded by an abundance of premium retail, office, entertainment and transport amenity.
“The A-grade asset provides an exceptional standard of office accommodation, with high ESG credentials. Over 75 per cent of the tenants are also sitting in first generation fit outs, ensuring that the cash flow profile of the asset is very robust.
“240 Queen Street has always been a Golden Triangle asset that the market has aspired to acquire. We anticipate strong interest in the offering.”
The International Expressions of Interest campaign for the property will close at 4pm on Thursday, March 23.