What price is Brisbane office space renting for in 2019?
The price commanded by Brisbane office space is wide and varied so there is no one answer for this question. A multitude of factors can impact the price commanded by office space. For example, location, available amenities, building grade and lease terms can all increase or decrease the rental price. In order to get a better understanding of the prices commanded by Brisbane office spaces, lets look at some of the key factors that will impact the rental rate.
Location location location
No surprises here. An office space in Brisbane CBD is almost always going to be more expensive than a similar product in other Brisbane suburbs, like Beenleigh or Nundah. Concurrently, premium grade buildings are typically located in the CBD and these will often command a premium rental rate. Which brings us to our second key factor…
Building Classification Grade (also called Class of asset)
Building classification grade has a massive impact on the prices commanded by office rentals around Brisbane. Office space for lease in premium grade buildings will always be more expensive than office space in A- or B-grade buildings. And space in lesser-quality buildings will be less expensive again.
Building classification grades are a voluntary industry guideline published by the Property Council of Australia (PCA). In order to receive a particular classification grade, a building must meet the majority of the requirements set out in the guidelines. Some of these factors include:
- the building’s age,
- location,
- transport access,
- rental and capital growth,
- floor plate size,
- security,
- parking & other amenities,
- energy saving and green rating,
- available natural light,
- prestige lobby and lift finishes etc.
Amenities on offer
As an inclusive society, the Brisbane office space market needs to provide a range of amenity to meet the needs or a diverse workforce. For example, disabled toilets, stair and ramp access to buildings, lifts between floors etc. Without these basic accessibility amenities, offices will tend to attract less than the average commercial rent per square metre.
Lease terms and size of office space
A tenant signing up to a 10 year lease will generally get a more favourable rental rate than a similar tenant who is signing up on a 2 year lease. This comes down to the inclusions that longer lease deals often attract. For example, landlords will often pay for the tenants fit out, and/or offer a rent free period to tenants who are signing up for longer leases.
As with longer lease terms, the more office space a tenant wants to lease, the larger the incentives they are likely to see. However, incentives are dependent on the equilibrium in the local market. So when the Brisbane office market is strong (meaning less space is available to lease), it is unlikely that incentives will be offered. And vice versa – when the market is weak, incentives will likely be on the table.
Sum up
There is no set rental rate for Brisbane office space. Instead, the price is determined by a range of factors as we’ve discussed above. However, one of the key benefits for commercial tenants over residential tenants, is the ability to negotiate. If you find a space you love but need to negotiate on price, our advice is to always submit an enquiry.
If you’re looking to rent Brisbane office space you can view our commercial properties for lease. Alternatively, if you’d like to buy commercial property in Brisbane you can view our commercial properties for sale.
