_Prime Brisbane CBD office asset announced to market

The only central CBD asset with a 10+ year weighted average lease expiry to come to the market in half a decade, and one of the biggest floor plate sizes available, 61 Mary Street will be highly sought-after by investors

Justin Bond August 29, 2018

An A-grade Brisbane CBD office asset offering exceptional investment fundamentals is announced to the market. Featuring a 10+ year weighted average lease expiry (WALE) and a 5 Star NABERS Energy rating 61 Mary Street is a rare opportunity that is anticipated to be highly sought-after.

Located in the heart of Brisbane’s CBD, the 17-level office tower is for sale through Knight Frank’s Justin Bond, Ben McGrath and Neil Brookes, conjunctionally with CBRE’s Tom Phipps, Bruce Baker and Flint Davidson, on behalf of QIC.

Over the past several years 61 Mary Street has undergone a $44 million refurbishment, and features one of the biggest floor plates available in the Brisbane CBD, between 1,525 and 2,030 square metres across a substantial 3,646 square metre site.

Fully occupied by the QLD State Government under a lease until 2029, 61 Mary Street is a unique investment ideally located within proximity to the Queens Wharf precinct and the proposed Cross River Rail project. The injection of capital for these major CBD infrastructure projects by the QLD State Government and private sector will only reinforce the long-term investment credentials of the property.

While strong domestic interest continues for Brisbane, throughout 2018 we have also witnessed increasing investor demand from Asia, Europe and the US, with limited availability in the market for CBD assets offering long-term secure income. We continue to expect further compression of capitalisation rates for secure, well-located investments.

Major government infrastructure projects include the $3 billion construction of Queen’s Wharf, which will generate 8,000 jobs once operational; the Cross River Rail and the Brisbane Metro.

The sale campaign comes at a time of strengthening confidence in Queensland’s property market. Brisbane has become an increasingly popular investment destination for both domestic, and particularly foreign capital, as the economic and leasing outlook improves.

With a lease structure that provides long dated income, and the opportunity to capitalise on an improving leasing market via a mid-term review, we anticipate there to be solid investment interest in 61 Mary Street.

The 61 Mary Street property features 28,749 square metres of net lettable area across 17 levels, in addition to a two-floor basement comprising 253 car bays. It is located 100 metres from the Queens Wharf development and 100 metres from the Cross River Rail Station.