09/07/2010 - Forced Out To Fringes
Activity beyond the city fringe has gained some momentum as tenants continue to
watch the pennies and consolidate their operations.
Brisbane-based mineral analysis and chemical supplies conglomerate Campbell Brothers has recently secured 1,394sqm of office space in the city's east.
Spread across two levels at 128 Gerler Road, Hendra, it brings administrative staff from three of its subsidiaries under one roof.
Lawrence Temple, of Raine & Horne Commercial, negotiated the deal.
The leasing rate has not been disclosed but similar properties of this size in the area attract from $200/sqm to $225/sqm.
Mr Temple said Campbell Brothers had committed to a three year lease with a three year option.
He said the property was an older style building - once part of a larger office/warehouse facility - which had been refurbished only about five years ago.
"Internally it presented quite well", Mr Temple said.
"The property also boasts 57 car parking spaces and was ready for occupation with very little modification."
It came equipped with data cabling, phone system, server room and some office furniture. Mr Temple said Raine & Horne was initially appointed by the previous tenant, Transfield, to sublease the space.
But he said with less than a year to run on the existing lease and Campbell Brothers showing strong interest in committing to the space, the owner chose to surrender to Transfield's contract and quickly secure a deal with the new tenant.
"Campbell Brothers has moved the administrative staff under one roof for economy of scale," Mr Temple said.
"They didn't want office space near the CBD because about 75 to 80 per cent of the staff are from the northside and a move closer to the city would have been detrimental in terms of access and parking."
Mr Temple said inquiry levels for office space outside of the 3km city fringe rim was increasing due to parking issues, traffic congestion and pressure on businesses to cut costs due to the hard economic climate.
"The GFC has put more pressure on businesses and they're looking at every dollar they spend," he said.
"If they go further out they can get space for two-thirds of the price than in the inner precincts such as Fortitude Valley & Bowen Hills."
For further information contact Marketing Agent Lawrence Temple on 0423 591 534.