Brisbane’s Terrace Office Park listed with 641-unit approval
With the 2032 Brisbane Olympic Games approaching, sports operators are already eyeing their next move and Terrace Office Park is a compelling choice.
The 7003-square-metre property at 527 Gregory Terrace, Fortitude Valley, comprises two office towers and has approval for 641 apartments. An incoming owner could continue operating and improving the office complex or pursue the approved residential scheme, with existing rental income providing flexibility over the timing of any redevelopment.
Colliers residential development sites director Troy Linnane says it’s not just the close proximity to the major sporting centres that makes it a drawcard for developers, but also the significant infrastructure investment taking place within a one kilometre radius of the property over the next five years.
“This is a genuine front-row seat to Brisbane’s Olympic precinct,” Linnane says.
“The site is adjacent to the future Athlete Village and upgraded arena at the RNA Showgrounds and is within walking distance of the Brisbane Olympic Stadium and National Aquatic Centre.
“It is an exceptionally well-positioned and elevated gateway site that will significantly benefit from the surrounding infrastructure investment.”
Existing income and upside
The property currently comprises two commercial buildings offering 7375 square metres of net lettable area and 175 car spaces, with tenants including Kapsch TrafficCom Australia, Bega Dairy and Drinks Services, and Agri Labour Australia.
At 80 per cent occupancy, the complex generates net passing annual income of $3.09 million, with further leasing scope to lift that figure to $4.12 million at full occupancy.
Its proximity to public transport and dining adds to its appeal for prospective tenants as it’s positioned about 500 metres from Exhibition Station and the King Street dining precinct, and 600 metres from Fortitude Valley Station.
Those amenities reflect Fortitude Valley’s broader evolution from its industrial past into a hub for creative workplaces, dining and retail, attracting a growing mix of businesses and residents.
Approved residential development scheme
The residential approval provides another pathway for buyers at a time when Brisbane faces a shortage of new apartments.
Colliers’ Brendan Hogan says inner Brisbane requires between 4000 and 5000 apartment completions a year ahead of the 2032 Games.
“The residential potential is particularly compelling given Brisbane’s shortage of new apartment supply,” Hogan says.
“With Brisbane facing a significant undersupply of new apartments, having an approved 641-unit residential scheme in a precinct about to undergo substantial gentrification is a standout proposition.”
The approved two-tower scheme gives purchasers a defined redevelopment option, with future residents positioned close to existing transport connections and dining amenities.
The property falls within the Bowen Hills Priority Development Area, where the planning framework allows a range of potential uses, subject to the relevant requirements.
A prime position for the Brisbane 2032 Olympic Games
Preparations for the Brisbane 2032 Olympic Games could create additional demand for office space in the precinct.
The Queensland government’s planned sporting precinct links the new Brisbane Stadium at Victoria Park, the National Aquatic Centre and the Brisbane Showgrounds, where the future Athlete Village is planned.
Colliers’ associate director of capital markets Brisbane, Sam Arkell, says demand is already increasing around the Olympic precincts, with the commercial impact expected to extend beyond the venues themselves.
“Olympic precincts are already seeing a spike in demand, particularly from sports management, stadium operations, and event-related and construction industries,” Arkell says.
“Businesses supporting the Games, from media and broadcasting to corporate sponsors and event logistics, will also require office space near key venues, which will drive rental growth in the Spring Hill, Bowen Hills and Fortitude Valley markets.”
The property is being offered through an expressions-of-interest campaign closing at 4pm on Wednesday, October 14.
