Tenant demand is driving the upgrading of Brisbane's prime-grade office buildings
The days of taking what you can get seem to be over when it comes to tenants selecting prime-grade buildings in Brisbane.
These days, tenants are not satisfied with just concierge services or barista coffee and are demanding services akin to six-star hotels.
JLL senior director office leasing James Montague said supply and demand had driven much of the evolution in prime-grade assets, however, landlord investment in the sector had also not subsided.
“Prime-grade building owners are now expected to provide end-of-trip and concierge services, while new-generation assets are looking to wellness concepts to ensure the building is supporting a true work-life balance,” he said.
“Corporate occupiers are no longer making real estate decisions that focus not only on the bottom line, but also what benefits the building or location can deliver back to their business.
“If they can achieve a massive boost in moral by moving to a building that provides everything within its confines, it makes a relocation highly compelling.”
A recent example of a building owner expanding its customer offerings was Central Plaza in Brisbane, he said, which now featured first-contact concierge services, complimentary lockers and fresh towel services, as well as overflow spaces that could be booked by the hour.
Owner ISPT had also created short-term flexible workspaces to enable project-based work without the need for longer-term traditional leases, Mr Montague said.
“Within the building’s lobby, ISPT is delivering a laneway style food-and-beverage concept that provides onsite catering options as well as a place to have a lunch meeting,” he said.
CBRE Queensland office leasing state director Chris Butters said tenants had become more discerning generally before committing to either new or renovated prime-grade buildings.
“Tenants contemplating relocation opportunities are placing an increased emphasis on designs, which consider third spaces, outdoor terraces, club lounges, business zones, wellness centres, and diversified food-and-beverage offerings,” Mr Butters said.
He said that businesses were also considering how their premises would potentially impact on the morale and productivity of staff.
“The prime grade office market is continually evolving in its attempt to capture the interest of potential occupants, as respective landlords focus on improving the customer experience by introducing new and exciting amenity platforms that will enhance both productivity and enjoyment,” Mr Butters said.
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