CAMPAIGN CUTS TOWER VACANCIES BY A THIRD
The new owners of this Emerald Lakes office tower put in a concerted effort to lift the number of tenants and it’s paid off handsomely
THE new owner of the Town Centre office tower in Emerald Lakes has cut vacancies by a third after a refreshed campaign to fill the office space.
Some tenancies in the five-level building (including ground-floor retail) at 3027 Town Centre Drive had not been occupied since the building was constructed in 2008.
CBRE’s Nick Selbie was engaged at the start of the year by Brisbane group Pointcorp to manage the building and help cut a vacancy rate that had reached 60 per cent.
Pointcorp bought Nifsan Developments in August last year, acquiring the company assets, which also included two development sites in Nerang as well as the office building, in the process.
Pointcorp director Chris Vitale said the excellent condition of the building, plus a “robust market” had made it an attractive purchase.
“When we bought the property, it was 60 per cent vacant,” he said.
“Some of the tenancies had not been leased since the building was built. It was in very good condition so we saw that as a real opportunity.”
Mr Vitale said a marketing campaign, through Mr Selbie, had a positive response from prospective tenants.
“We see the leasing market along that Nerang-Carrara area as quite robust at the moment.
“We first met the existing tenants and tried to reset their leases and then attracted new tenants.”
Mr Selbie said the existing tenants, including Cardno and MWM Advisory, signed on for new terms after renegotiating their leases, which included a cut in the rental rate to between $350/sq m and $375/sq m.
Cardno negotiated a six-year lease with a five-year option, vacating the 326/sq m ground-floor tenancy as part of the terms.
MWM Advisory struck, starting this month, a four-year lease with a four-year option for 479/sq m.
New tenants include property valuers Landmark White, which has signed a five-year lease with a fiveyear option for a 202/sq m space that has not previously been occupied.
Another new tenant, Tribeca Homes, signed on for five-years with a five-year option for 157/sq m.
Mr Selbie said Pointcorp was able to attract the new companies by splitting larger tenancies to suit the new tenants as well as contributing towards the fit-out.
He said the vacancy rate now stood at 40 per cent, with vacancies including the top floor, spanning 1067/sq m, and marketed with furniture and renal incentive.
Mr Selbie said he has received strong interest in the space from serviced-office operators and professional services firms. He said all deals had been struck for between $350/sq m and $390/sq m net.