There is increased demand for office space in Brisbane’s city centre to meet future population demands, with an additional 2 million sqm of office developments anticipated to meet the market needs over the next decade. The city’s population is projected to grow to approximately 6 million people, half a million of which are anticipated to reside in Brisbane city.
To accommodate the projected population estimates, a lower range of around 473,000 sqm of office stock is expected, based on white-collar growth projections, whilst the upper range of between 1.5 to 1.9 million sqm is based on using Sydney and Melbourne stock-to-population ratios as a proxy. Both scenarios are equally significant due to their correlation and influence.
At the present time, the Brisbane CBD doesn’t have the capacity or current trajectory to meet these demands. It is estimated that the city will have to expand out to Milton and Fortitude Valley to accommodate initial growth, then beyond, as the city makes the necessary infrastructural adjustments in preparation for delivering the 2032 Summer Olympic Games.
Colliers Queensland research report ‘Into the Golden Decade: Transformation of the Brisbane CBD’ suggests the city will require 11 additional office towers the size of 1 William Street, the 44-storey home of the State Government, to meet the city’s future needs.
Brisbane CBD’s projected growth is expected to be fuelled by interstate and international migration, which will fuel the pool of office workers, particularly in technical, public administration and safety, financial, insurance, and tech industries. Brisbane City also showed a quicker recovery following the COVID-19 lockdowns, with less work-from-home uptake, which has seen the city buck the trends of empty office towers seen elsewhere down the eastern seaboard.
“Given the current obstacles facing the industry, the data presents an intriguing opportunity for developers looking to pivot from their typical wheelhouses. Those willing to explore alternative sectors as the residential market recalibrates will reap the rewards. Adapting is key!” ‒ Nicholas Condoleon, Senior Associate: Planning – Queensland.
There is increased opportunity and appetite for the delivery of top-tier office towers with higher quality amenities and on-site services for tenants looking to entice tenants with a holistic working experience.
With the demand high and land stock available, Brisbane now awaits only the capital investors to drive these office projects toward completion.
Interested in chatting about your next Brisbane project? Reach out to mail@ratio.com.au.
