Urbis has proposed a new approach for a development project by Charter Hall in Brisbane, which involves redistributing the gross floor area to larger floor plates across fewer levels. This decision was made in response to the demands of major tenants in the city who are seeking to improve their office facilities, with a focus on employee experience. The key prospective tenants in Brisbane are looking for large floor plate-sized accommodations that can offer diverse yet well-connected facilities within the tenancies. Due to ongoing population growth in Brisbane and a lack of recent proposals for new major commercial projects in the city, there is a projected moderate undersupply of A-grade commercial office space in the next five years.
Another recent development in Brisbane is the submission of plans by Sumner Innovate to convert an office tower at 150 Charlotte Street into student accommodation. One major change in the proposed building plans is the removal of an arcade between Queen Street and Burnett Lane, which was determined to not contribute strategically to the pedestrian movement network in the area. Charter Hall had also considered acquiring the Treasury Casino building across from the proposed development but decided to pull out of the deal last June. The space was planned to be turned into a hotel and high-end retail precinct, and there has been global interest in the property from potential buyers.
The decision to remove the arcade was based on the findings of design reviews that indicated it did not provide a significant connection between Queen Street and Burnett Lane. There were existing connections nearby that fulfilled this purpose without the need for the arcade. Additionally, the Treasury Casino, which will be vacated this year with the opening of the Queen’s Wharf casino, was considered for acquisition by Charter Hall but the deal fell through. McVay Real Estate and JLL were later appointed to sell the old Treasury building, Treasury Hotel, and an underground car park.
Overall, the proposed changes to the development project in Brisbane by Urbis and Charter Hall reflect a strategic response to the demands of major tenants in the city for improved office facilities. The decision to redistribute the gross floor area to larger floor plates across fewer levels is guided by the need to provide accommodations that can cater to the diverse requirements of prospective tenants. The removal of the arcade and the consideration of acquiring the Treasury Casino building were key aspects of the development plans, highlighting the dynamic nature of the commercial real estate market in Brisbane. Despite the challenges and changes in the property market, there continues to be global interest in investing in prime locations in the city.
