New Farm for Mitchells

Written on the 11 February 2009

 

NEW Farm’s James Street continues to cement itself as a creative hub following the relocation of Mitchell Communication Group from its existing premises in Spring Hill.
Australia’s largest online and offline media buyer has taken up residence in a 700 sq m space which was leased as a turnkey solution – with the owner stripping, refitting and custom designing to Mitchells’ requirements.
The six-year, $500,000 deal was negotiated by Jones Lang LaSalle’s Don Mackenzie and Tom Barr. For Mitchells staff, the added benefit of the James Street location was the lifestyle and coffee culture for which the area is famous.
Mackenzie said the Brisbane fringe office market had reached the pinnacle of its supply cycle in Q3 2008, with four projects totalling 55,000 sq m reaching completion, however noted that the fringe market would also be affected by the global economic situation and warned of a softer demand environment.
“In the latest Jones Lang LaSalle Q3 research into the Brisbane fringe market, demand appeared strong on the back of healthy pre-commitments to the incoming supply, although enquiry levels have anecdotally slowed in line with the softer global economic environment,” he says.
Mackenzie says vacancy had eased from 3 per cent to 3.9 per cent, as supply outweighed demand and back-fill spaces emerged. An increase in incentives in Q308 saw effective rents decline, with prime gross effective rents falling 5.4 per cent and secondary effective rents falling 10.1 per cent in the quarter.
Research shows one sale transaction of $18.7 million was recorded, while prime yields softened further in the quarter reflecting the ongoing uncertainty in investment markets.
While the peak of the supply cycle in the fringe has now passed, the softer demand environment and the large supply pipeline in the CBD will continue to place downward pressure on effective rents in coming quarters. Although there are many global economic challenges ahead, Queensland’s economy is in one of the best positions nationally to weather the global storm.

Latest News

MANTRA'S SHARE PRICE SURGE INDICATES 'SUITORS ARE CIRCLING' THE HOTEL GROUP

THE rumour mill surrounding a high-level takeover of Mantra Group (ASX: MTR) is in full production with its shares su...

MELBOURNE CBD GEMS SELL FOR $17 MILLION, MARKING A NEW PROPERTY HOTSPOT

LITTLE Lonsdale Street in the heart of Melbourne's CBD has become a favourite for investors in 2017, following th...

WHAT THE COLLAPSE OF ADWORDS MEANS FOR THE FUTURE OF ONLINE MARKETING

IT'S the story that has rocked the world of advertising. The once reliable, seamless, and lucrative Google (NASDA...

BRISBANE VFX PRODUCTION COMPANY CLEANS UP AT MAJOR INTERNATIONAL ADVERTISING AWARDS

AUSTRALIAN production company Alt.vfx has broken records in global advertising, becoming the first business to win...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter