Quintessential Equity turn around 77% vacant building in Brisbane’s toughest market
28 November 2018
It’s not all doom and gloom in Milton after property group Quintessential Equity turned around a 77 per cent vacant building in one of Brisbane’s most challenging property markets.
Despite Origin Energy vacating 26,000 sqm of space across two buildings earlier this year and with Milton’s vacancy spiking at 30 per cent at its peak, the company’s purchase appeared to be a brave move when they acquired the property at 8 Gardner Close in 2017.
One year on and the 4,270-sqm building is now 100 per cent leased, with major tenants including computer network company Opengear, construction engineering company Kramer Ausenco and commercial construction and refurbishment firm Intrec.
Far from a gamble, the property’s potential was obvious according to Noah Warren, Quintessential Equity’s General Manager of Asset Management.
“The property fits Quintessential Equity’s strict property selection criteria with strong underlying attributes such as structure, carparks and accessible location,” said Mr Warren.
“We saw an opportunity because we were taking a smaller office building with the ability to split the floors into sizes the market demanded.
“We saw it as a high-quality building which just needed a little tender loving care.
“The capital works to regenerate the aesthetic and mechanical aspects of the asset effectively future proofed the building and importantly improved our clients’ comfort conditions in their tenancies.”
The building upgrades included ground floor and on-floor lobbies, bathrooms, lifts, façade and external areas as well as a major mechanical overhaul to improve the overall energy efficiency.
In order to attract small to medium-sized businesses, Quintessential Equity took the strategic approach of splitting floors to create smaller office space and providing a turnkey fit-out delivery solution for 90 per cent of tenants, with “plug in and play” custom fit-outs. This created a competitive advantage as high-quality office spaces for smaller tenants of between 10 to 30 employees were not abundantly available in Milton.
A display suite was also the first new thing built in the property, which gave agents a “destination” to take a prospective tenant, allowing the prospective tenants to see past the ongoing construction work at the building.