Changing the face of property in Queensland
There are many older pieces of commercial office property across Brisbane, and there are now calls ...
There are many older pieces of commercial office property across Brisbane, and there are now calls for these to be renewed and renovated, to better address rising vacancy rates.
Chris Mountford, Queensland Executive Director for the Property Council of Australia (PCA) made a statement in a February 5 release about how demand for better and higher-end commercial space is increasing, and this needs to be met sooner rather than later.
"We are now experiencing a very high vacancy rate in the secondary office sector as the city begins the transition away from the office accommodation of the past, to the office accommodation of the future," he said in the release.
The vacancy rates across the city have backed this up, and the Queensland branch of the PCA is continuing its push for redevelopment.
Changing the grade
In the PCA press release, Mr Mountford noted that roughly 51 per cent of office buildings in the Queensland capital were at or below grade B - a level that has seen vacancy rates rise to 23 per cent.
"Brisbane must begin to consider potential options for conversion and adaptive reuse of older buildings into uses such as student housing, retirement living and hotel accommodation," he added. This direction for growth may be of interest to anyone with an eye to buying a property in these sectors.
An IBISWorld report on changes occurring in the tourism industry indicated that this market would be worth $117.2 billion in the 2014-2015 financial year, with the number of visitors to the country increasing by 6 per cent. This suggests that there will be a thriving market for upgrading these buildings to hotels in particular, something all involved in the real estate industry should watch.
Making changes higher up
Mr Mountford stated that changes would need to be made at a governmental level to facilitate the growth of commercial property out of the Grade B sector, which may fall to incoming Deputy Premier and Minister for Infrastructure, Local Government and Planning Jackie Trad.
This echoes calls from the Housing Industry Association, which regularly stresses the need for removal of red tape to allow for growth in real estate.
With this potential for development in discussion, it may be an excellent time to consider speaking to a local real estate agent about commercial real estate for sale in and around Queensland.