Commercial Market Update – Brisbane Cityscope May 2021
The latest research from Brisbane Cityscope shows that over the past three months the number of property sales has dropped significantly, but the sales numbers have almost doubled. The last three months up to the beginning of May 2021 recorded 3 sales for a total of $ 211 million, including $ 210 million for commercial, $ 300,000 for commercial strata and $ 700,000 for retail.
In comparison, the last three months through early February 2021 saw 14 sales for a total of $ 123.2 million, including $ 82.3 million for commercial, $ 11 million for commercial strata, 20 , $ 5 million for retail and $ 9.4 million for others.
The 12 months leading up to the start of May 2021 saw 36 sales totaling more than $ 514.3 million, more than $ 2.55 billion lower than the figure for the same period the year before.
The table below shows the sales recorded for the last eight Brisbane Cityscope updates:
The most important sales recorded this quarter are:
310 Ann Street, formerly Suncorp Center, was sold for $ 210 million to AM 310 Ann Street Investment Pty Ltd as trustee of AM 310 Ann Street Investment Unit Trust. The 18,360 m2 office building was completely stripped and refurbished in 2017 at a cost of around $ 55 million. The latest sale represented an initial return of 5.5% on passing income of approximately $ 11.55 million and included the lease-out of road license RL0 / 215327, lot 1 CP AP3495. Bruce Baker, Flint Davidson and Peter Chapple of CBRE Brisbane negotiated the sale together with Paul Noonan and Seb Turnbull of JLL Brisbane.
Unit 1, 212 Margaret Street, a 46 square meter ground floor retail unit, was purchased for $ 725,000 by Xingyu Han. Nick Wedge and Tony Wang of agent Colliers International Brisbane negotiated the sale, which represented an initial return of 6.76% on passing income of $ 49,010. The unit was last traded in 2005 for $ 500,000.
Unit 37, 97 Creek Street, a 55 square meter eleventh-floor office (known as Level 13), was purchased for $ 300,000 by D&L Power Super Pty Ltd. Tom Theodore of CBRE Brisbane negotiated the sale.
Properties currently for sale include:
- 299 Adelaide Street, an 11-story 9,010 m² office building with a cafe on the ground floor and two levels of underground parking. On sale by expression of interest, closing on May 25, 2021; agents, CBRE Brisbane (Bruce Baker and Peter Chapple), JLL Brisbane (Seb Turnbull and Paul Noonan) and JLL International (Kate Low) The property was advertised with a fully leased net income of $ 4,371,671 per year.
- Turbot House Hotel, a four story hotel recently renamed City Edge Brisbane. For sale with an asking price of $ 10 million; agent, RE / MAX City – Brisbane (Geoff Esdale).
- 179 Turbot Street, 27-storey 24,904 m² office building with cart parking for 185 vehicles. On sale by expression of interest closing on June 3, 2021; agents, Knight Frank Brisbane (Justin Bond) and Sydney (Ben Schubert).
Properties currently under contract (conditional or unconditional) include:
- Two Six Two Adelaide St, a 7 storey building of 2314 m² with basement. Built in 2026 and renovated numerous times over the years. Under the offer; agent, CBRE (Jack Morrison, Peter Chapple and Andrew Adnam).
- The Brisbane Club Tower, a 21-storey 10,836 m² office building. The lease is under a conditional contract with CHAB Office Trust for $ 31.5 million and the freehold interest is conditional with CHAB Office Trust for $ 32 million, subject to a return lease five years plus options. Transactions are expected to settle simultaneously in 2021.
- William Jolly Place, a four-story office building at 309 North Quay with a self-storage facility in the back. Under contract of approximately $ 65 million to Charter Hall and QuadReal, with settlement expected in 2021; agents, Knight Frank Brisbane (Jason Lynch and Don Mackenzie) and Colliers International Brisbane (Justin Bond).