Market leading funds manager Clarence Property has secured two new tenants for its Zone Underwood large format centre south of Brisbane as part of repositioning, tenancy mix and facility improvements.
Sydney Tools and Bags to Go have both committed to new lease deals, while Best Friends Pets are relocating to a new store location within the centre. Long term tenants Fernwood Fitness and Officeworks have also cemented their locations at Zone Underwood with lease renewals of 10 and seven years respectively.
Combined, the deals total 6,266sqm – representing close to 60% of the centre’s total lettable area of 11,067sqm. They increase the centre’s WALE to 5.2 years.
Clarence Property Managing Director Peter Fahey noted; “We have invested over $1.5 million in improving the performance and environmental credentials of the centre, including painting, new signage, refurbished amenities, security cameras, LED lighting and a 100kW solar system. We are very happy with the improvements directly resulting in an increase in leasing activity.”
CBRE’s Sam Macgregor and Andrew Brimson negotiated the new leases at the Underwood centre, which occupies a prominent 2.85ha site on the corner of Compton and Kingston Roads.
“The centre is now 90% occupied with ongoing discussions for the balance of the vacant area – highlighting rising interest for large format leasing opportunities in prominent locations,” Mr Macgregor said.
Mr Brimson added; “The proactive approach by Clarence Property to ownership and management has greatly improved the overall look and feel of the centre, and this has been well received by retailers in the market. In addition to this, the opening of the new Bunnings Warehouse next door has increased the customer draw of the immediate location, further strengthening the precinct as the dominant large format retail destination in the catchment.”
The largest of the new transactions involves Sydney Tools taking a seven-year lease over a freestanding, 1,873sqm store space previously occupied by Best Friends Pets. This represents the second new store lease for Sydney Tools in Brisbane in the past 12 months, with the store expected to open in February 2020.
This will be Sydney Tools 33rd store across New South Wales, Victoria, Queensland and the Australian Capital Territory. The retailer plans to operate more than 40 stores, with four more store openings slated for Queensland before the end of the year
In turn, Best Friend Pets will relocate to another Zone Underwood tenancy of 1,118sqm after signing a new 10-year lease.
Bags to Go has meanwhile leased a 334sqm store space on a five-year term, providing the retailer with its 24th store nationally and 11th in Queensland.
Clarence Property acquired Zone Underwood in April 2018. The property’s location on the intersection of Kingston and Compton Roads provides exposure to 60,000 vehicles daily and access via three road frontages.
The centre provides abundant onsite parking for 270 cars and is just 1km from the Pacific Highway M1.
It is home to high-profile brands onsite such as Rebel, Officeworks, Good Price Pharmacy, Drummond Golf, Fernwood Fitness and Subway.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
