Brisbane CBD retail asset 130 Queen Street sold
Super prime retail corner and future multi-level flagship development highly sought after for repositioning and redevelopment
BRISBANE, 4 September 2019 – JLL’s Retail Investments and Capital Markets teams have exclusively negotiated the sale of a 100% interest in 130 Queen Street, one of Australia’s only super prime retail corners.
The thriving 24-hour retail destination at the intersection of Queen Street Mall and Albert Street in the Brisbane CBD sold for $77.1 million to Marquette Properties on a capitalization rate of 5.60%.
JLL’s joint Head of Retail Investments for Australia Sam Hatcher said: “CBD retail is one of the most compelling sub-sectors at present given the underlying land value and potential for future adaptive re-use. The property at 130 Queen Street in particular has the potential to be a future multi-level flagship development.”
“Retail assets on the Queen Street Mall are tightly held with only 11 transactions occurring over the last 10 years.
“There is a definitely a scarcity value to these assets on super-prime strips such as Queen Street Mall, which underpins their long-term value proposition.”
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JLL’s Joint Head of Retail Investments Jacob Swan said: “With 130 Queen Street having been held for 23 years, the opportunity to purchase was highly sought after by both domestic and international investors.
“Consumers are increasingly selective about where they shop. Downtown CBD retail will continue to be one of best performing segments of the retail property market given the close proximity to workers, residents, students and tourists, as well as the high concentration of retail which creates critical mass.”
JLL’s Senior Director of Research Andrew Quillfeldt said: “CBD retail transactions have been decreasing for four years. The slowdown highlights the difficulty in accessing assets within this sub-sector and the reluctance by vendors to sell given the positive demand drivers and opportunity to reposition assets. The volume of activity fell from $1.5 billion in FY16 to $711 million in FY19.
“CBD retail assets offer compelling yields relative to other assets classes such as office and industrial. Prime office and industrial yields have been compressing significantly and a spread has emerged which investors see as appealing.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com
About 130 Queen Street, Brisbane CBD
The asset features a four-storey retail and office building on the busiest corner in the Brisbane CBD. The building provides a total NLA of 3,780sqm in its current configuration, comprising 2,991sqm of retail over the first three floors and basement, and 779sqm of office accommodation and 10sqm storage above.
It boasts an unparalleled corner site in the heart of one of Australia’s busiest pedestrian mall – Queen Street Mall. This premier location in the heart of the Brisbane CBD is one of Brisbane’s most prized retail frontages.
Strategically located on the future pedestrian thoroughfare between the new Albert Street cross-river rail station and the Brisbane Live venue at Roma Street, the property provides potential for future flagship retail development over multiple levels
The site is one of eight prime corners on the Queen Street Mall. The property at 130 Queen Street sits at the epicentre of foot traffic within Brisbane, with more than 26 million people walking past the property each year.