As the bustling heart of Queensland’s capital city, Brisbane’s Central Business District (CBD) offers a thriving hub for businesses seeking prime office locations. However, understanding the true costs associated with leasing an office space in the Brisbane CBD is essential for both start-ups and established companies alike. In this insight article, we delve into the key factors that influence office rents in Brisbane CBD, providing a comprehensive understanding of the expenses involved in securing the ideal workspace.
Quick Reference Rental Calculator:
|Gross Rental Range (per sqm)||Fit out Type||Incentive (based on fit out) applied as a rental discount|
|$600 – $750||Existing (5+ years old)||30 – 40%|
|$725 – $825||Existing (<5 years old)||
20 – 30%
|A||$795 – $950||Brand New Spec||
0 – 15%
|Premium||$950 – $1250||Unfitted (Custom Built)||
35 – 45%
- Building: A-grade
- Gross Rental Rate: $795/sqm
- Fitout: Existing (occupied <5 years), 250 sqm
- Incentive: 30% based on a 5-year lease term
Step 1: Rent without incentive: $795/sqm x 250 sqm = $198,750
Step 2: Incentive deduction: $198,750 x 30% = $59,625
Step 3: Final Effective Rent: $198,750 – $59,625 = $139,125 per annum or $556.5/sqm
After applying the 30% incentive for the 5-year lease term, the total rent will be $139,125 per annum or effectively $556.5/sqm for the 250 sqm office space in the A-grade building.
Furthermore, what are some factors that affect your rent:
- Location and Market Dynamics: The Brisbane CBD is divided into distinct precincts, each with its own unique characteristics and rental rates. The location you choose within the CBD will greatly impact the cost of your office lease. Prime areas such as Queen Street, Eagle Street Pier, or the Riverside Precinct command higher rental prices due to their accessibility, proximity to amenities, and prestigious reputation.
- Size and Layout: Office space requirements differ based on the size and layout of the office space you choose will directly impact the cost of your lease. Larger spaces with more square footage will generally come with higher rental rates. Additionally, the layout and configuration of the office, including the number of private offices, meeting rooms, and open-plan areas, will also affect the overall cost. For more about size & layouts.
- Lease Term and Fitout: Longer lease terms tend to correlate with more favourable rental figures. Additionally, the type of fitout can influence the lease term. New fitouts often require longer lease terms to accommodate customization, while existing fitouts may have shorter lease terms due to their ready-to-use nature. This distinction in lease terms based on fitout type can impact the rental rate. For more about fitouts.
- Incentive: In the Brisbane CBD, gross leases are commonly utilized. These leases include the majority of operating expenses within the rental amount. Moreover, incentives are applied based on the lease term and fitout requirements. Depending on factors such as the length of the lease term and the extent of fitout customization, tenants may benefit from significantly lower effective rental costs compared to the gross face rents. Understanding and leveraging these incentives can help businesses secure more cost-effective leasing options. For more about incentives.
To provide an overview of office rents in the Brisbane CBD, the following graph illustrates the gross rental rates across different building grades with a forecast through 2024:
To provide a more comprehensive overview of what you’re effectively paying after an applied incentive, the following graph illustrates the effective rental rates across different building grades with a forecast through 2024:
Navigating office rents in the Brisbane CBD requires a thorough understanding of the various factors influencing costs. Location, size, layout, lease terms, and fitout requirements all contribute to the rental rates in this dynamic market. Additionally, the utilization of gross leases with incentives can lead to significantly lower effective rental costs for tenants. By carefully considering these factors and analyzing the provided graphs, businesses can make informed decisions, securing the ideal office space that aligns with their operational needs while optimizing their financial resources.
In addition to the factors discussed above, it is important to consider other associated costs when leasing an office space in the Brisbane CBD. Find out more here.