The fall and rise of the Milton office market.
Brisbane’s Milton office precinct in the inner-western suburbs has transformed from woe to go, as the city’s leading commercial zone.
The riverside area has overcome the impact of flooding events in 2011 and 2022 to outperform the rest of the city on occupancy rates, recording 12% per cent in August 2022. This has occurred after owners invested millions into building renovations and upgrades to create one of the best-quality office leasing offers in Brisbane.
Stretching from the city’s original cafe strip at Park Road, along the Brisbane riverfront Coronation Drive, to the master-planned Milton Green precinct, the area is conveniently located for workers.
As the second-largest office precinct outside Brisbane’s central business district, Milton has strong amenity and strong transport links.
Milton office leases offer a range of affordable tenancies across all grades.
Brisbane mining services and engineering offices
Milton has become the home of Brisbane’s thriving mining services and engineering sectors.
Engineering and civil works companies comprise about 37 per cent of the Milton market, creating an ecosystem of industry innovation.
Leading contractor CPB Contractors moved into 8000sqm of A-grade office space in the waterfront office, 339 Coronation Drive, in 2020.
CPB Contractors’ Finance Manager, Ian Graeme, the area offered great facilities in an easy-to-access location.
“Having our offices in Milton offers all the benefits of working in a busy commercial environment, without the traffic or congestion of the central business district,” he said.
“Our staff enjoy being able to commute using the train, bus or ferry and take advantage of the riverside views. Milton is a great place to work.”
Integrated services provider Downer EDI is another major tenant in the area, after leasing about 7000sqm in 2019. ADC and many small and medium engineering enterprises also lease offices in Milton.
Affordable inner-west office space
Milton office leases are available in all categories and grades at excellent value. Milton features affordable inner-west office spaces, also at high-quality, with A-grade face rents hovering about 85 per cent of other Brisbane fringe areas.
Rental rates range from $550sqm to $600sqm gross. To lease spaces of the same quality in other precincts, the price may be up to $650-$700 per sqm.
Milton offers a more affordable option across the categories of building, from A-grade to B-grade and C-grade.
The office refurbishments or existing tenancies are among the best quality in the Brisbane market, providing staff with contemporary surroundings.
Tenants report that river views are always popular. Likewise, corporate office managers in the inner west often find their staff reside in the city’s west, or that the suburban location offers a convenient place to work.
Contemporary office spaces Brisbane inner west
While the Milton commercial market is thriving now, it has not always been the case.
The region experienced significant vacancies - about 35 per cent - after the 2011 floods. The vacancies were exacerbated after the departure of one major corporate tenant in the area, who moved to a new building in the central business district.
But the high vacancy rate sparked a turnaround for the Milton office precinct. New owners took control of some of the major buildings, bringing a revival in investment across the precinct.
In one striking example, Quintessential Equity’s investment in upgrades to 8 Gardner Close cut vacancies from 77 per cent to none.
Corporate offices including 339 Coronation Drive, 159 Coronation Drive, 1 Gardner Close, 2 Gardner Close and Milton Green have all been renovated in the last decade, prompting strong occupancy rates for their contemporary office spaces in the Brisbane inner west.
A-grade Milton offices
A-grade Milton offices offer high-quality surroundings for tenants. One of the excellent office environments in Brisbane is 339 Coronation Drive.
Funds manager Keppel Capital repositioned the property with an extensive refurbishment in 2020 into a more sustainable, modern, light-filled, urban commercial building.
Keppel Capital Asset Manager, Australia, Jay Horrell, said the exoskeleton of the building was painted and a new clear roof installed. There were building management systems and lighting upgrades, and lobbies and vacant suites were also renovated. The refurbishment also included the installation of feature new end-of-trip facilities, a gym and cafe, mezzanine communal spaces, as well as a redesign of the original central courtyard in an active “green lounge” for staff and clients to enjoy.
“Prospective tenants see value in the Brisbane fringe markets, which we are witnessing in the form of increased leasing enquiry for high-quality product,” Mr Horrell said.
Amenity for Milton commercial leases
Offices in Milton benefit from their close proximity to popular cafe and retail precincts, making it popular with workers.
Staff can walk to the original home of Italian and French cafes and restaurants in Brisbane, Park Road. Further west is the contemporary cafe and recreation hub at Rosalie, which offers a range of dining and bar options.
Milton is also just four train stops or a short drive from Indooroopilly Shopping Centre, which is one of the largest retail centres in Australia.
Likewise, the state’s biggest university campus, the University of Queensland at St Lucia, is just 5km away and easily accessible by ferry, bus or car.
Leasing a Milton office
Brisbane’s inner west is easily accessible on public transport using buses, trains and ferries.
Leasing a Milton office will mean staff have access to a range of transport options, as well as being close to the Inner City Bypass and Riverside Expressway that connect the city to the highway network.
The Milton train station is on the Ipswich line, connecting the central business district to the city of Ipswich to the west.
The CityCat stop opposite the famous Regatta Hotel also connects the area to the city, Kangaroo Point, New Farm, Newstead and north to Hamilton North Shore, as well as the University of Queensland.
If you are looking for opportunities to lease in Milton in Brisbane, contact Aegis Property Group today.
Aegis Property Group is a leading office leasing specialist in the Brisbane Metro Market, with over 27 years of experience in deal orientation and campaign management.
Contact our team on 07 3195 9960 to inquire today and take advantage of current leasing opportunities.