Brisbane building shatters CBD record

The sale of a freestanding retail building in the Brisbane CBD has set a new per square metre record.

The deal saw a private Singaporean investor snap up the building at 105 Elizabeth St for $6.5 million – equivalent to a sale rate of $23,298 per square metre of net lettable area.

That figure sets a new Brisbane CBD record for retail assets outside of the Queen Street Mall.

The deal for the building, which is situated directly opposite the Myer Centre and one street parallel to the Queen Street Mall, is also the Singaporean investor’s first foray into Australia.

CBRE director and head of Brisbane metropolitan sales Mike Walsh says the expressions of interest campaign generated significant interest, with more than 120 enquiries.

Only 14 freestanding properties under $10 million have transacted on Elizabeth Street in the past 20 years

“More than half of the enquiries originated from interstate and overseas parties, who were attracted to the long-term growth outlook for the CBD and the comparatively attractive returns on offer in Brisbane,” Walsh says.

“Six offers were submitted, including three overseas bids.”

“What was interesting to note was the clear distinction between domestic and offshore pricing, with the average offshore bid being 10% higher than the average domestic bid.”

The retail building on Elizabeth St in Brisbane’s CBD has sold for a record rate.

The property’s prime location was one of the key draw cards, with the building situated less than 150m from the future Queens Wharf Casino precinct.

“Only 14 freestanding properties under $10 million have transacted on Elizabeth Street in the past 20 years,” CBRE associate director Andrew Adnam says.

“The sale provided a rare opportunity to secure a foothold in a prized location that has significant ongoing appeal for city retail tenants.”

More than half of the enquiries originated from interstate and overseas parties

The two-level, 279sqm building is situated on a site area of 516sqm.

It is fully tenanted, with the current passing net income of approximately $384,827 translating to an initial yield of 6.09%.

Existing tenants are skin care and health food retailer Sini Care and popular dessert bar and high tea franchise Passion Tree Café.