Back to Work? High Rise Commercial Leases are Back in Play
The nation’s push to get workers back at their desks has prompted new hope in the South East Queensland commercial property market. With vacancies still on the rise, increasing to 10.2% in the first quarter, commercial landlords, in the inner city areas of Brisbane, Gold Coast and Sunshine Coast are welcoming the push to get staff back to work.
Queensland in Better Shape than Other Markets
Despite a slight rise in high-rise commercial property vacancies, Queensland continues to outperform other capital cities. South East Queensland’s investment in public infrastructure ahead of the Olympic Games has provided a lifeline to the property industry.
Competition Remains Fierce
Not just Brisbane’s CBD, but the Gold Coast and Sunshine Coast commercial property market remain a “buyer’s market” with commercial landlords offering incentives to fill vacant offices, hospitality and retail spaces. While the Sunshine Coast has fared relatively well, maintaining commercial rental rates around $800-$1000 per square meter, Brisbane’s CBD remains stagnant with premium property renting for as little as $875 per square meter.
Real Estate Agents Urge Clients to Look Beyond Rent Reductions
While long term rent reductions are a last resort, commercial landlords are providing sign up incentives including free or discounted first months and other dollar driven incentives. Real Estate Agents urge property owners to consider investing in the property to attract new clients instead. Not only does an improved lobby area or facade improve the desirability of the property but acts as a deductible investment in the future earnings of the building. High rise building maintenance, high rise wash downs, abseil painting, and high rise inspections for leak detection/waterproofing and concrete repairs will all not only improve the street appeal of the building but ensure its future rental returns.
New Era for Retail?
After the double whammy of post-covid work from home and the rise and rise of ecommerce, retailers are optimistic that the continued push to get workers back at their city centre desks will improve the bottom line. With Brisbane’s famed Myer Centre losing its namesake retailer after nearly four decades, the renamed Uptown has struggled to attract long term retail leases. The return of workers to the inner city is a welcome change for inner city retailers, restaurants and attractions.
