As remote work reshapes commercial real estate nationally, a homegrown entrepreneur is betting big on adaptive, mixed-use spaces that keep the Garden City competitive.
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Sandra Chen's decision to convert a heritage-listed warehouse on Margaret Street into a boutique office and co-working hub might seem contrarian in an era of hybrid work arrangements, but the local developer insists Toowoomba's commercial property market is entering a renaissance—not a decline.
Chen's 18-month renovation project, completed earlier this year, transformed the 1920s building into 4,500 square metres of flexible workspace, meeting rooms, and ground-floor retail. The development reflects a broader shift in how Toowoomba's business community views commercial real estate: not as rows of static cubicles, but as collaborative ecosystems that attract and retain talent.
"The narrative around office space has been doom and gloom," Chen says. "But what we're seeing locally is demand for quality, adaptable environments. Businesses want to be in Toowoomba, and they want spaces that reflect that choice."
Her gamble appears to have paid off. The Margaret Street development achieved 85 per cent occupancy within six months, with tenants ranging from tech startups to established professional services firms relocating from Brisbane. Commercial rates on the Toowoomba market have remained relatively stable—averaging $280-$320 per square metre annually for premium office space—compared to Brisbane's $500-plus, a differential that Chen believes will drive continued interest.
The development sits within Toowoomba's evolving commercial corridor, alongside anchor institutions like the University of Southern Queensland and growing logistics hubs that support the region's agricultural export economy. City council data shows office vacancy rates have stabilised at around 12 per cent, down from 16 per cent two years ago.
Chen's approach—combining heritage preservation with modern amenities, incorporating ground-floor activation, and designing flexibility into lease structures—has influenced other local developers. Two competing projects on James Street and in the Newtown precinct have adopted similar mixed-use models.
For now, Chen is focused on her Margaret Street tenants and exploring a second adaptive-reuse project near the Toowoomba Showgrounds. She acknowledges the broader economic uncertainties facing Australian commercial real estate but remains convinced that regional centres with strong community identity and economic fundamentals will outperform.
"People want to work somewhere that matters," she reflects. "Toowoomba has that. We just needed to build the spaces to match the ambition."
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