The Fortitude Valley and Newstead office market is experiencing increased interest from major occupiers in the CBD, and is now seen as a real alternative for office accommodation by both staff and management.
Occupiers who have recently committed to new developments or buildings under construction include:
· Bank of Queensland: Have committed to 12,500m² at FKP’s Gasworks development in Newstead;
· Macquarie Bank: Have committed to 3,194m² at Laing O’Rourke’s M&A development in Fortitude Valley;
· Ergon Energy: Have committed to 6,576m² at Laing O’Rourke’s M&A development in Fortitude Valley;
· Lend Lease: Have committed to 4,000m² at their latest development at the RNA in Fortitude Valley.
· Urban Utilities: Have committed to 10,000m² at CBIC’s Green Square development in Fortitude Valley.
These groups join other strong covenants already in the area, including: Energex; Brisbane City Council; Bechtel; John Holland Group; Watpac; Aecom; Arup; Leighton’s; and Sparq Solutions.
The trend of CBD tenants moving out to Near City office locations is forecast to continue, with key reasoning being the large contiguous floor plates these projects offer in comparison to their existing CBD buildings, as well as providing an opportunity for a significant cultural and business change to occur.
Key development precincts that will benefit will include Lend Leases’s RNA, FKP’s Gasworks, and Watpac’s Waterloo.