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Home Actively managing our assets: 545 Queen Street, Brisbane
August 1, 2024

Actively managing our assets: 545 Queen Street, Brisbane

As part of Cromwell’s approach to actively managing assets, the performance of each property is continually appraised – relative to market demand; possible future uses; socio-demographic profiles; and growth corridors. Understanding the property cycle, future capital works, and the demand for continuing occupation underpins every asset management and refurbishment strategy across our business. In this edition we profile Cromwell’s activity at 545 Queen Street in Brisbane.

545 Queen Street was acquired by Cromwell Funds Management in May 2021 for $117.5 million, on behalf of Cromwell Direct Property Fund (DPF) unitholders. Occupying its own block, the property is prominently located at the northern entrance to Brisbane’s sought-after ‘Golden Triangle’ financial district.

Creating sustainable spaces in line with tenant demand

In April 2024, 545 Queen Street was awarded a 6.0-star NABERS Energy rating for the first time ever, up from 5.5 stars in the previous period. NABERS (National Australian Built Environment Rating System) provides simple, reliable, and comparable sustainability measurement across building sectors, such as hotels, shopping centres, apartments, offices, data centres, and more.

A NABERS Energy rating is compulsory whenever an office building larger than 1,000 square metres is being sold or leased in Australia – a 6.0-star rating is the highest that can currently be achieved.

Top-rated NABERS buildings are highly sought after by blue-chip and government tenants. Indeed, from 1 July 2025, Australian Government specifications dictate that, where a government tenant leases an office space of 1,000 square metres, or above, for four or more years, the office space and the building in which it is located must have and maintain a 5.5 star or higher base building and tenancy NABERS Energy ratings.

Given the prevalence of government tenants in a number of Cromwell buildings, we are taking steps to increase our NABERS ratings across all assets, where possible.

545 Queen Street’s impressive 6.0-star rating in April was the culmination years of sustainability planning and energy saving initiatives, in addition to ongoing consultation with Australian energy solutions provider, Conservia.

Conservia was engaged to help save energy through the modification of the building’s existing heating, ventilation, and air conditioning (HVAC) system. Energy control strategies implemented at 545 Queen Street have included:

  • Carefully monitoring individual office conditions and modifying the building’s HVAC operating system to only supply cooling/heating to required levels, instead of unnecessary high/low temperatures. This approach has allowed Cromwell to reduce the HVAC system’s chiller operation time – as well as machinery pump and fan speeds – which, in turn, has saved energy.
  • Undertaking calculations regarding the ‘optimum start time’ of the HVAC system – this means tenants are greeted with the desired temperature in their office space when they first walk in the door each day, but the cooling/heating system is not turned on too early in the morning, thus reducing energy consumption.
  • Similarly, calculating the ‘optimum stop’ process, so that the HVAC equipment can be powered down over time toward the end of the day, while still meeting tenants’ comfort conditions.
  • Turning off the HVAC system when it is not required to be running.
  • Monitoring indoor environmental quality markers in the office spaces, such as carbon dioxide levels. By better understanding these markers, the HVAC system can be programmed to pump in fresh air from outside, which naturally cools the building without the need for other elements in the cooling system to be turned on.
  • Installing smart alarms that alert building users to excess energy and water usage.
    Pinpointing areas of electrical overuse through automated monitoring systems, reducing the need for manual checks.
  • Assisting NABERS assessors to ensure all tenant exclusions are being counted.
    Continuous refining of HVAC control systems through the year; ensuring no out-of-sync sensors start or stop the system unnecessarily.
  • Regular monthly reporting on the system’s efficiencies and NABERS estimates through the year.

This approach saved almost 80,000 kilowatt hours (kWh) in 2023, compared to the previous year, meaning greater system efficiencies, thousands of dollars saved, and less impact on the environment.

545 Queen Street tenants awarded Cromwell an overall satisfaction level an impressive 11% higher than the Tenant Survey Index.

 

Learn more about other properties from the Fund. 

Read more about 100 Creek St Read more about 95 Grenfell St
Keeping tenants satisfied

Measuring and understanding tenant satisfaction levels is core to Cromwell’s tenant retention strategy, and is critical in helping to maximise rental yield – which translates to greater investor returns.

Future Forma – an agency specialising in the independent evaluation of tenant–customer experiences across individual assets and portfolios – was engaged by Cromwell Property Group to conduct annual tenant surveys, commencing in August 2023.

67% of survey recipients at 545 Queen Street provided responses to the survey. A five-point ratings system was used for the survey:

Responses were marked against the Tenant Survey Index (TSI), which comprises of 350+ investment grade office building surveys throughout Australia, and is calculated as a rolling four-year average to ensure that data remains current.

Property Management Team Building services Overall score
545 Queen Street 99 85 92
Tenant Satisfaction Index 84 79 81

As seen in the table above, 545 Queen Street tenants awarded Cromwell an overall satisfaction level an impressive 11% higher than the Tenant Survey Index.

 

Leasing activity

A total of three new leases have been signed for 545 Queen Street in the last 12 months (to May 2024). Furthermore, one of the largest tenants in the building has exercised a two-year option over almost 1,500 sqm.

Property profile

Location and amenity are important considerations for both investors and tenants. Bounded by Edward, Queen, and Eagle Streets, the ‘Golden Triangle’ is a financial district in the heart of the Queensland capital, home to a number of prominent financial institutions, as well as corporate offices, restaurants, and high-end department stores.

At the northern end of this district is Cromwell’s A-grade, 10-storey 545 Queen Street office building, which sits on a 2,735 sqm parcel of land – with floor plates ranging from 750 sqm up to campus-style 2,138 sqm. The combined total net lettable area is 13,363 sqm, which is leased to a federal government tenant, as well as listed and blue-chip tenants – including Sonic Healthcare, and SeaLink Travel Group, the country’s leading marine transport provider.

High floor-to-ceiling glass windows provide excellent views of the iconic Story Bridge, which spans the Brisbane river below, and let in an abundance of natural light. The building’s foyer is bright and airy, with wide-open street views – and the ground level café area is both inviting and functional. Building users have access to upgraded end-of-trip facilities, including modern showers and change rooms, lockers, and bike racks.

Key statistics

76.9%
Occupancy as at 30 June 2024
Office
13,363 sqm
6.0-Star
4.5-Star
About Cromwell’s Direct Property Fund

The Cromwell Direct Property Fund is comprised of a quality portfolio of eight commercial property assets1 – including 100 Creek Street – with a long, 4-year weighted average lease expiry (WALE) and 54% of income sourced from government and listed tenants.

Find out more
  1. The fund holds indirect interests in two of the assets via investments in underlying managed investment schemes, with CFM the responsible entity for both.

CFM has prepared the investment updates and is the responsible entity of, and the issuer of units in, the funds referred to in the investment updates (the Funds). In making an investment decision in relation to a Fund, it is important that you read the disclosure document and the target market determination for that Fund. The investment updates for each Fund refer to the disclosure document (product disclosure statement and any supplementary product disclosure statement) issued for that Fund. The disclosure document and target market determination for each Fund are issued by CFM and are available from www.cromwell.com.au or by calling Cromwell’s Investor Services Team on 1300 268 078. Not all of the Funds are open for investment. Applications for units in open Funds can only be made on application forms accompanying the disclosure document for the Fund.