The Australian Tax Office is seeking major new office space in the Brisbane CBD as it seeks to consolidate out of buildings owned by listed shopping centre giant Scentre and LaSalle Investment management.
Cushman & Wakefield have been appointed to assist the Tax Office in its tender for up to 24,000 square metres in the Brisbane market, making the requirement one of the largest currently on offer.
“We have approached the market for future options for office space in Brisbane,” an ATO spokeswoman said, “As this process is currently under way we are not in a position to make any further comment.”
The tax office is said to be offering as much as a 10 year lease deal but wants the space by 2019, therefore leaving the field open only to those developers and landlords who currently have space or have offices under construction.
The tax office’s big new requirement – it already has a brand new office building on Elizabeth Street in Brisbane which was developed by Grocon – will mean it’s buildings at Chermside (owned by Scentre) and Mt Gravatt (owned by LaSalle) are likely to be made vacant.
The request could also help the Brisbane CBD landlords strengthen the rental market. The current vacancy in the city is up around 14 per cent, which is very high historically for Brisbane.
Other major groups are seeking space and are in the final stages of selecting new office digs. Insurance group Suncorp is touted to go to a new property on Ann Street in the Brisbane CBD that listed group Mirvac has optioned for a major new development. Suncorp could also go to ISPT’s proposed The Regent and Investa and Charter Hall’s 370 Queen Street.
The $1.6 billion ASX-listed software company TechnologyOne has also shortlisted several high-profile developers and landlords for a major new 12,000 square metre office headquarters in Brisbane.
Furthermore, QSuper is also in negotiations for new space. Charter Hall’s development at the top of the Queen Street Mall, which is under pressure from the local council, was set to be the super funds headquarters but there is doubt around that now.