CBD call for new tenants A vibrant city requires fresh blood
DEVELOPERS should be trying to encourage commercial tenants to relocate to the CBD, instead of targeting tenants already in Townsville, to help drive down vacancy rates, says Knight Frank managing director Craig Stack
Mr Stack said developers of new commercial premises should be encouraged to attract new tenants to the city to backfill existing vacant commercial buildings and dry up oversupply.
He said a prime example was recent large commercial buildings built in the CBD that had pulled suburban tenants into the city, rather than tenants already in the city simply moving offices within the same area and therefore not reducing vacancy rates.
“The state government building was partly occupied by state government tenants previously located in suburban offices, while the Ergon building accommodates employees who have relocated from other regions to form a head office,” Mr Stack said. “If we simply build new buildings for existing tenants, we increase the vacant area with no net effect or benefit to the CBD.
“The Brisbane CBD is experiencing this with the relocation of state government tenants from existing offices in its CBD. It also happened in Mackay.”
Townsville’s overall commercial vacancy rate is sitting at close to 20 per cent, while Townsville has a balanced vacancy rate for the top tier of commercial office buildings at 9 per cent, according to the Knight Frank CBD Office Occupancy Monitor.
Mr Stack said due to the high commercial vacancy rate, new supply of tenancies could be easily absorbed by the market.
“New buildings should be encouraged to demonstrate a net gain toward activity in the CBD,” he said.
“Any new buildings that simply relocates existing tenants can create a wider issue.
“By encouraging new buildings to demonstrate a net gain through increased workers in the CBD, we are more likely to achieve the community objective of a more active inner city.”