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King George Central cements uplift in Brisbane CBD office market
Andrew Borger 6 June 2011
Demand for premium space in Leighton Properties’ King George Central development could be another sign of rallying market confidence as another key tenant signs to additional space in just under a month.
Grant Thornton Australia has exercised its expansion option and pre-committed to an additional floor in the 27-storey tower at 145 Ann St.
Grant Thornton announced its commitment to lease levels 16 to 18 in January last year, and will now add level 19 to the pre-lease agreement, bringing its total occupancy to 4,519m2.
Grant Thornton Brisbane Managing Director, Rodger Flynn said the original decision to move the firm’s Brisbane operations from its current location next door to King George Central was based largely on the popularity and convenience of the location for clients and staff.
“The latest decision to exercise our expansion option was predicated entirely on our belief in the continued growth of the Brisbane office and the rising demand for premium-grade space in the heart of the city,” Mr Flynn said.
“We’ve experienced sustained growth in parallel with the growth of many of our clients. We see this as a strong indicator that the economy is moving in the right direction and other organisations may be looking to dust off expansion plans that were shelved during the last two years.
“With King George Central the only premium-grade commercial tower in the Central Precinct due to open in Brisbane in 2012, high-quality, new space is going to be hard to find. The proximity to amenities and transport as well as services within the building make King George Central a highly attractive option, so we’re securing the space we need while we have the opportunity.”
Premium-grade commercial space in Brisbane’s CBD is limited and much sought after. According to the Brisbane Commercial Property Prospects report by BIS Shrapnel in April 2011, premium effective rents are set to increase over 45% in the next five years to 2016.
Grant Thornton’s commitment to additional space, along with GHD’s April announcement that it will take up its expansion option, means King George Central is now over 75% pre-leased.
Leighton Properties’ Executive Director and Queensland State Manager, Andrew Borger said the location of King George Central at the heart of the city was a factor in securing major tenants to date and interest in the little remaining space has grown with the increased construction activity earlier this year.
“People want the whole experience around work to be as convenient as possible – that is, getting to and from work needs to be easy, food at lunchtime needs to be quick and nutritious and speedy access to retail is a definite bonus. In an era where staff turnover is a genuine management issue, enhancing the office environment and the broader amenities of the area can be a key factor in attracting and retaining staff,” he said.
The development is being built by Thiess and is set to be Queensland’s healthiest building. It is the first in Australia to be publicly supported by the Heart Foundation and will include Healthy by Design features such as bicycle storage, full end-of-trip facilities, a healthy choice café and user friendly stairwells running to all floors from ground level.
For more information
Andrew Borger
Executive Director and State Manager Queensland
Phone+61 7 3370 4722
Email Andrew Borger
