SunWater has signed a new 10-year lease at Green Square in Fortitude Valley, Queensland’s first 6-star Green Star office building.
SunWater, which manages $13 million in water infrastructure assets, has taken 3,000sqm in the North Tower of Green Square and will relocate from Brisbane’s CBD in 2019.
CBRE’s Advisory & Transaction Services Director James Comino and KordaMentha Real Estate’s Sam Johnston represented SunWater throughout the search process for new premises, while Colliers International’s Bo Veivers represented Green Square’s owner, ISPT.
KordaMentha’s Sam Johnston said; “SunWater has secured a new office that satisfies its key objectives being to firstly generate cost efficiencies for the business, provide more modern and improved building quality to enhance staff culture and connectivity and a building that demonstrates flood resilience and excellent accessibility.”
Located at the corner of St Paul’s Terrace and Constance Street, Green Square is in the heart of the urban renewal precinct of Fortitude Valley, just 250 metres from Fortitude Valley train station and two kilometres north of Brisbane CBD.
The A Grade building comprises net lettable area (NLA) of 24,000sqm across 11 commercial office levels with an activated ground level that offers various retail, food and beverage options, and recently refurbished end-of-trip facilities.
The building boasts strong sustainability credentials, having achieved Queensland’s first 6 Star Green Star Office Design v2 Rating from the Green Building Council of Australia.
CBRE’s James Comino said; “SunWater was drawn to Green Square North Tower for its modern improvements, excellent public transport options and the promising future of the neighbouring RNA Showgrounds urban renewal precinct.”
A key component of SunWater’s office requirement included an operations centre to monitor and coordinate its water infrastructure assets 24/7 and during emergency events. Therefore, the building services and accessibility were critical aspects in the search process.
This specific requirement, coupled with a tightening leasing market for large contiguous office space, narrowed the list of suitable options.
Colliers International’s Mr Veivers said SunWater was the latest firm to commit to the building, with Colliers having been involved in leasing over 4,000sqm of office space within the Green Square North Tower over the past 12 months.
The commitment follows an active period for the Brisbane leasing market, with over 21,000sqm of positive net absorption recorded in the CBD in the first half of 2018.
“Additional commitments that will have a positive impact on net absorption in the back half of 2018 include WeWork, The Hub, Allianz and further State Government commitments which will take occupation, collectively, of over 25,000sqm,” CBRE’s Mr Comino said.
“We are expecting the prime grade vacancy rate in the CBD market to fall below 10% by the end of the year. Landlords have been capitalising on the strong brokerage market (sub-1,500sqm) and incrementally leasing up vacancies, which has contributed to the tightening availability of large banks of space.”
“This increased leasing activity will continue to have the greatest impact on occupiers larger than 3,000sqm, as far fewer contiguous options will be available. We expect the leasing market will remain tight for larger occupiers until the upcoming development stock (currently under construction) is completed and relieves supply pressure,” Mr Comino added.
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