Gold Coast commercial property: Office space remains tight as stock dries up

New data released this week reveals one section of the Gold Coast’s property market is astonishingly tight, leaving the city in a ‘precarious’ position. FIND OUT WHY

New data released this week reveals the Gold Coast’s office market remains astonishingly tight, despite more space coming on the market.

Vacancy rates barely shifted from 6.2 per cent to 6.5 per cent in the past six months, according to the Property Council of Australia.

With no new projects in the pipeline in either the short or medium-term, experts warn there is no relief on the horizon.

Property Council executive director Jess Caire said it was critical that more office projects were built.

Property Council of Australia Queensland Executive Director Jess Caire Picture David Clark

“Southeast Queensland leads the country in terms of demand for office space and the Gold Coast is at the forefront,” she said.

“While it is excellent to see that businesses are looking to invest and take up space, we need to ensure that we do not squander this opportunity.

“The recent increase in vacancy is attributable to new supply being added, however, there is no new space set to come online for the foreseeable future while demand will continue unabated.

“This will leave the Gold Coast office market in a precarious position, with new and expanding businesses unable to find space all while the city and region tries to continue to grow and diversify its economy.

“Like all forms of large-scale development, office buildings are taking longer than ever to build.”

The market remains tight Picture: Nigel Hallett

Currently there is just 1750sq m of A-Grade office space available on the Gold Coast, with the bulk of availability at Southport and Surfers Paradise, with vacancy rates there at 9.2 per cent and 10.4 per cent respectively.

Scarcity remains high in the central suburbs of Bundall, Varsity Lakes, Robina and Broadbeach where vacancies sit at below 5 per cent.

CBRE senior director Tania Moore said many businesses would struggle to relocate given the lack of space.

“The Gold Coast office market continues to experience strong demand, with A-grade vacancy rates hitting a record low of just 2 per cent,” she said.

“Despite plenty of inquiry from prospective tenants last year, the lack of suitable options is restricting businesses being able to move.

Tania Moore, Senior Director at CBRE.

“Looking ahead, market vacancy is anticipated to remain steady due to the absence of a pipeline of new supply, while rental growth will increase.”

Ray White head of research Vanessa Rader said demand remained strong for Gold Coast office space.

“The Gold Coast office market continues to demonstrate remarkable resilience and growth in the latest Property Council results,” she said.

“The overall vacancy rate remains tight at 6.5 per cent, with sublease vacancy virtually non-existent at just 0.3 per cent.

“Notably, vacancy rates have consistently remained in the 6 per cent range over the past two and a half years, reflecting sustained demand from both new and expanding businesses in the region.

“This persistent strength hasn’t gone unnoticed by investors, who increasingly view the Gold Coast as an attractive investment destination.

“This stable, low-vacancy environment, combined with continued absorption of new supply, underscores the Gold Coast’s evolution as a mature office market with strong underlying fundamentals.”

Originally published as Gold Coast commercial property: Office space remains tight as stock dries up