‘ Terrible’ move for CBD
CRITICISM has been levelled at the tax office move from Stanley St to a new building in Flinders St West with concerns it will hurt CBD trade and raise already high vacancy rates.
Knight Frank North Queensland managing director Craig Stack, whose group acts as manager for the Stanley Place property, said he had no issue with Honeycombes striking a “smart deal” with the tax office.
But he believed the move was not a good one for CBD traders or the office market.
He was also concerned other government agencies could relocate to the CBD fringe or outside.
“The agencies of the State and Federal Government need to comply with the objectives of the City Deal, otherwise it’s all talk and no walk,” he said.
“The vacancies in our prime office accommodation is 9 per cent. This ( move) will have a significant impact on overall vacancy rates for prime office accommodation.”
Other property industry sources, who did not want to be identified, said the move was “terrible” and would put downward pressure on rents.
“Local MPs and the council should have been all over this. It’s terrible for the CBD,” one source said.
Townsville Chamber of Commerce president Debbie Rains said there would likely be fewer tax office workers going into the central city area spending money.
“It’s probably a little further of a walk,” Ms Rains said.
“We would still like to think we would attract them into the CBD for retail therapy.”
The tax office confirmed earlier this month that it had signed a 10- year lease to be a tenant the new 4700 sqm office building to be developed behind NQN House and the Central Queensland University buildings on Flinders St West. The tax office previously occupied much of the 14- level Stanley Place tower but with cuts in staff is understood to have reduced its requirements at Stanley 6000 sqm.
Townsville City Council debated Honeycombes’ request for Townsville Jobs and Investment Package concessions, including on infrastructure charges, at a closed meeting in April.
Minutes record that two councillors, Paul Jacob and Mark Molachino, voted no to the request for reasons including it did not adhere to council policy and would be an ad hoc extension of the package.
In a statement, Planning and Development Committee Place to around chair Les Walker said the council worked tirelessly to activate the CBD and had increased the number of its staff working from the city.
“We’re continually lobbying state and federal governments to employ more workers in Townsville – particularly in the CBD,” Cr Walker said.
“Any relocation of services and staff from the CBD, either state or federal, is a concern.”
Cr Walker said the council had a longstanding practice of encouraging new CBD developments through incentive packages.