Large development sites in Fortitude Valley are standing empty as developers who planned high-rise apartments buildings on the sites pursue other options.
The latest was Kenlynn Property Group, which has proposed a 15-storey commercial office building after it scrapped plans for a residential and hotel development.
It was the company's third proposal for its site at 949 Ann Street, which property records show was purchased for $6.28 million in October 2012.
Kenlynn hotels and development manager Andrew Travers said its newly proposed $50 million commercial project was the best use for the site.
"It is a significant corner site with prominence inbound to the CBD," Mr Travers said.
"Our view is that given current and forecast market conditions, this is the best use for the site and delivers a quality architectural design statement for the high visibility location.
"The building size is of a 'boutique' nature, relative to some other recently announced projects, which we believe will differentiate it in the market and be well received."
In November, 2013, thirteen months after it purchased the property, Kenlynn submitted a development application to Brisbane City Council for a 90-room hotel with function and meeting rooms and a 49-unit apartment building.
The council approved the mixed residential and hotel development in July, 2014, only for Kenlynn to then submit a different proposal for the site in February, 2015.
This time, it proposed a development with a 70-room hotel and 42 two-bedroom apartments.
This second application received council approval on June 1, 2015, but construction never started.
On Friday, Kenlynn submitted its plans for its office tower development.
Mr Travers said Kenlynn opted for a commercial development following assessment of market conditions around current and proposed supply of residential stock in the Valley.
"There is quite positive sentiment towards commercial with early signs of an improving leasing market," he said.
Property Council Queensland figures showed the office vacancy rate for the city's fringe was 12.6 per cent in January, 0.3 per cent less than six months earlier.
The city's vacancy rate was 15.3 per cent, compared to 16.9 per cent in July, 2016.
Kenlynn was not the first to change a DA from residential to commercial on Ann Street in the Valley , with Walker Corporation opting against against a residential development at number 801.
Last Wednesday, the council received Walker's application for a 26-storey commercial tower at 801 Ann Street, where approval had previously been given for 433 apartments across two towers.
Walker's Queensland development general manager Peter Saba said the slowdown in the inner-city high-rise residential market due to oversupply was behind the decision.
"The outlook for the commercial property sector is brighter," Mr Saba said.
Council city planning chairman Julian Simmonds said the resurgent Brisbane CBD office market was leading to a wave of interest in new commercial properties in the CBD fringe, such as Fortitude Valley.
"Fortitude Valley has been the recipient of significant commercial building investment in the last couple of years and council expects this to continue with a number of commercial projects in the pipeline," he said.
The council has not yet received all the documentation required to start the assessment of the application.
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