CBRE team finalises Brisbane’s largest owner-occupier deal this year

Brisbane, 30 September 2014 – An office building in Spring Hill has been sold by CBRE for $9.35 million, representing the largest owner-occupier deal in Brisbane this year.

CBRE’s Mike Walsh and Peter Court sold 400 Boundary St, Spring Hill on behalf of Nielson Properties to a private owner-occupier in an off market transaction.

400 Boundary Street is a modern, low rise building sitting on a highly exposed corner site, offering 2,869sqm of high quality commercial space. A recent refurbishment has provided the building with upgraded services such as a new lift and foyer on Boundary Street, incorporating retail amenity. There is also secure basement car parking for 56 vehicles and a future cycle station facility incorporating showers, lockers and bicycle storage units.

Boundary Street is one of the major thoroughfares through Spring Hill, within a 500m walk of Brisbane’s Central Station and connected directly to the CBD by services on the free Spring Hill Bus Loop. The building is in the heart of the retail precinct on Boundary Street, including an IGA supermarket, post office, medical centre and a host of cafes and food outlets.

Mr Walsh said; “It’s no secret that transactions for this market sector (the 2,000sqm plus owner-occupier market) are difficult to negotiate, with large business enterprises being offered compelling deals from existing landlords in light of a recalibrated leasing market. There are also highly attractive incentives being offered, allowing organisations to re-set their occupancy costs at appealing rates with long term tenure.”

“That being said, astute purchasers, such as those of 400 Boundary Street, have taken a longer term view, recognising the capital appreciation uplift from owning freehold premises, and the ability to dictate their own tenure,” Mr Walsh added.

Mr Walsh says Spring Hill is currently undergoing a renaissance in residential development, in light of the proposed new Spring Hill Neighbourhood Plan with a number of planned office withdrawals into residential or short term accommodation uses. As a result, the Spring Hill office market is set to tighten in coming years.