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AMP Capital has announced a series of major lease renewals and signings that have seen Milton Green achieve a 3.7 per cent vacancy rate compared to Brisbane’s CBD Fringe rate of 13.8 per cent*, highlighting the strength and appeal of the precinct in the Brisbane market.
Global engineering and consulting firm Golder has signed an additional eight-year lease for more than 2,200 sqm, which extends its stay at Milton Green until late 2028. Newcomers to the precinct include Property Development Solutions (Australia), which has signed for five years. Property Development Solutions join longstanding tenants Toyota Finance Australia and Illion, whose recent lease renewals will bring their tenures within Milton Green to 18 and 26 years’ respectively.
AMP Capital’s Managing Director, Office and Logistics, Luke Briscoe, said the demand for the Milton Green precinct is a testament to the ongoing commitment of co-owners AMP Capital Diversified Property Fund (ADPF) and Sunsuper to invest in the customer experience.
Mr Briscoe said: “During the last three years, Milton Green has benefited from circa $8 million worth of significant upgrades, which have centred around a strategy to deliver new experiences for our tenant customers, including the delivery of new market-leading flexible meeting rooms and workspaces, urbanising the ground plane to deliver impressive activated experiences and a new evolution of end-of-trip facilities.
“These improvements have clearly resonated well with current customers whose space needs have changed over time and prospective customers who are looking to provide their employees with a dynamic workspace that celebrates a balanced work-life.
“We are proud to deliver on the Milton Green vision for the benefit of our longest-standing tenancies, through to our newest customers and we look forward to continuing to build on these partnerships and supporting the needs of these businesses for many years to come.”
The 51,000sqm commercial hub includes six commercial buildings and nine retailers. The precinct also includes weekly farmers markets, pop-up food trucks, a child-care facility, public carparking facilities and an on-site customer experience manager who curates weekly events and programs such as yoga, and networking functions.
About the Brisbane Market
According to the 2019 Property Council of Australia (PCA) Office Market Report, the Brisbane Fringe market has improved in terms of vacancy rate from its peak at 15.7 per cent in January 2019 to 13.8 per cent in July 2019, due to strong above-average net absorption of circa 33,000 sqm over the past six months.
The vacancy rate is still elevated, being above the PCA historical average (1992-2019) of circa 11 per cent. The Milton sub-market has underperformed the other Brisbane Fringe Markets with 17.5 per cent at July 2019 (the PCA historical average vacancy rate is circa 13%).
This is, however, an improvement from the recent peak vacancy rate of 27.9 per cent in July 2018 and is the most improved market over the past 12 months in terms of reducing its vacancy rate (%) and actual sqm (by 23,980 sqm).
Milton Green’s vacancy rate of 3.7 per cent is significantly under the Brisbane Fringe Markets and Brisbane CBD, which were both at 11.9 per cent at July 2019.
About Milton Green
As Brisbane's premier CBD fringe office precinct, Milton Green is a 51,000 sqm precinct incorporating six A-grade office buildings and 1,010 sqm of retail set amongst a lush environment including mature fig trees. The precinct is supported by abundant amenities including a childcare facility, visitor car parking station, restaurants, cafés, and retail and business services. Milton Green’s vision is to be a truly integrated commercial community that is family-friendly, offering the perfect balance of permanent on-site amenity with an ever-changing program of events that provide an evolving experience for those who live, work or play there.
About AMP Capital Real Estate
AMP Capital is one of the largest direct real estate fund managers in the Asia-Pacific1 with more than $28 billion2 in assets under management on behalf of global investors. AMP Capital is also one of the most experienced managers, with a heritage in real estate investment, management and development spanning over 50 years and many investment cycles, starting with Australia's first skyscraper which opened in 1962.
AMP Capital's extensive global network and integrated management model allows its 600-strong team of real estate professionals to realise true value for clients through the investment management, property management and development of a portfolio of some of the most iconic shopping centres, office buildings and industrial estates across Australia and New Zealand.
1 Source: ANREV/INREV/NCREIF Fund Manager Survey 2018
2 As at 30 June 2019. This includes AMP Capital’s 24.9 per cent share of PCCP’s NAV, equivalent to A$1.6b
While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.