Hines Global REIT has secured Aurizon as a major tenant in its 100 Brookes Street office building in Fortitude Valley, further strengthening the property’s tenancy profile.
Aurizon has taken occupation of 3,491sqm of space in the building, which is directly opposite the rail freight operator’s 900 Ann Street headquarters.
CBRE’s James Comino and Mel Pikos negotiated the deal, with Aurizon represented by Julian Kettle of White & Partners.
The five-year lease commitment is for levels one and two in the building, which was constructed in 2008 for Bechtel.
Mr Comino said the building’s location, security provisions and amenity had been key attractions for Aurizon, with Hines presently refurbishing the ground level foyer and in the process of introducing a café retailer.
“The building offered a level of accommodation which suited Aurizon’s mid-term plans, particularly in light of its proximity to their new office headquarters at 900 Ann Street,” Mr Comino said
“The refurbishment program for 100 Brookes Street tied in well with Aurizon’s occupation timeline, ensuring that a high-quality workplace experience was delivered to staff.”
CBRE’s Mel Pikos added that the completion of the ground floor foyer works had helped draw heightened interest in the building from a range of tenants.
“On the heels of the Aurizon commitment, we are in negotiations with several tenants to close out the remaining office space in the building,” Mr Pikos said.
“With the vacancy rate tightening in Fortitude Valley’s Urban Renewal Precinct, we expect tenants will need to make faster decisions to avoid missing out on good quality, contiguous leasing options.”
CBRE Research forecasts that the office vacancy rate in the precinct will decrease to 10% by year’s end - a marked improvement from the reported 25.7% vacancy in April 2017.
“A higher volume of lease transactions coupled with improving occupier confidence has underpinned the decreasing vacancy rate,” Mr Comino said.
“Over the past 12 months we have witnessed a growing number of resources and construction companies, including BHP, Rio Tinto and Downer, either taking their sublease space off the market to re-occupy or committing to additional space.”
Mr Comino added that CBRE was forecasting limited supply additions in the Urban Renewal Precinct with 25 King Street at the RNA Showgrounds the only major project on the horizon. It would deliver 7,000sqm of vacancy, which is expected to be largely committed before the building’s completion later this year.
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