It was the second warehouse to be constructed for the rapidly expanding merchandisers and was built when Rockhampton's activity as a thriving city port fostered such commercial development near the Fitzroy River wharves.

It was in these new premises where Reid began to specialise as a wholesaler, trading in wine, spirits and general merchandise, supplying the hotels and stations in central Western Queensland.

Since Rockhampton had been declared an official port in 1858, it had acted as the major transport and trade centre of central Queensland making it a prosperous city in which wholesale merchants like Reid could base their business.

He diversified his interests, and ran lighters down the Fitzroy River to Keppel Bay where larger overseas ships unloaded their cargoes.

The firm acted as general merchants distributing groceries, ales, domestic and builders' hardware, farm produce, "fancy" goods, rural products, drugs, stationery, confectionery, and cigarettes.

The firm moved to the corner of Quay and Derby Streets taking residence in its new warehouse which was designed by Brisbane architect Richard Gailey.

Edwin Morton Hockings was a pupil of Richard Gailey in Brisbane in the 1880s, and while there he entered and won a competition for the design of Rockhampton Girls Grammar School.

[1] Walter Reid & Company continued to expand importing goods directly from England, America, Europe and India at the turn of the century.

In the late 1950s, part of the East Street warehouse was used to manufacture tin and sheet metal until a new factory was built in North Rockhampton.

[1] Walter Reid & Co was well enough established to survive the winding down of operations at the port in the middle of the 20th century and its main activities were no longer focussed on the river wharves.

The warehouse at the corner of East and Derby Streets was bought by the Rockhampton City Council in 1977 and converted to a community arts centre.

[1] In the 1970s two fire isolated concrete stairwells were constructed along the East Street and Quay Lane elevations and a passenger lift was introduced, enclosed in a brick shaft.

[1] The Walter Reid Community Arts Centre, a three-storeyed unpainted cement rendered masonry warehouse structure, is located on the northern corner of East and Derby Streets.

The roof is concealed behind a parapet wall consisting of a deep cornice supporting rendered pillars which surmount the engaged piers.

The centre bay to both street frontages is surmounted by a rounded pediment with a central vertical moulding crowned by a rendered ornament.

[1] The ground floor elevation has tall, paired sash windows with fanlights to each bay, and the Derby Street section has short segmental arched header lights to the basement.

[1] The Quay Lane elevation is not rendered, but has a similar composition of regularly spaced engaged piers with paired sash windows to each bay.

[1] Internal framing is provided by substantial timber columns, bearers and joists, with ceilings lined with galvanised ripple iron to the ground and first floors.

The roof has timber framed trusses with bolted connections, forming a saw-tooth profile, with glass louvred clerestory windows.

[1] The first floor is partitioned similarly, with a central corridor, large gallery and studio spaces, performance areas, and amenities at the eastern corner.

The former Walter Reid warehouse on the corner of East and Derby Streets, Rockhampton was erected between 1900 and 1902 and reflects the high level of commercial development which occurred near the wharves on the Fitzroy River during the latter 19th century.

The building also retains elements such as the basement, through carriage-way, large interior volumes and evidence of early machinery, all of which are typical of warehouse structures.

It also has special association with Walter Reid & Co, a longstanding Rockhampton based mercantile company which was important in Queensland economic history in the late 19th and early 20th centuries.