Gold Coast property: Commercial office space shortage the worst in Australia in July 2024

The Gold Coast property market appears to be going from strength-to-strength with one exception, which has been dubbed the worst in Australia. FIND OUT WHY

The Gold Coast’s commercial office market is the tightest in the country, plunging to a record low on the back of increasing demand.

New data released on Thursday reveals the vacancy rate has fallen from 6.4 per cent in January to 6.2 per cent.

Property Council of Australia Queensland executive director Jess Caire said the situation was especially acute on the Gold Coast.

“The Gold Coast has the lowest vacancy rate of any Australian office market recorded as part of our July office market figures,” she said.

“We have seen vacancy hovering around 6 per cent on the Coast for a while now which is extremely low compared to most office markets.

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

“It illustrates the significant interest of investors and businesses in the Gold Coast and also southeast Queensland more broadly.

“However, with vacancy rates as low as they are at currently it is difficult for prospective businesses get a foothold on the Gold Coast as there simply isn’t enough suitable office space.”

According to the data:

* The fall was due to more than 906sq m of space being taken up.

* Broadbeach saw a dramatic fall in vacancy from 3.7 per cent to 3 per cent, while Bundall fell from 5.5 per cent to 4.8 per cent.

* Surfers Paradise saw an increase in vacancy rates, increasing from 8 per cent to 9.3 per cent.

* The market is expected to see an uptick by Christmas, with more than 5034sq m of projects expected to be completed. This includes the refurbishment of 33 Scarborough Street, which will have 3000sq m of available space.

The Gold Coast has a shortage of office space.

However, with little new stock beyond this on the way, there are fears the market will not see any relief until 2027 at the earliest.

Property specialists CBRE’s senior director Tania Moore said the lack of office space made it difficult for the Coast to attract major companies.

“The Gold Coast office sector has been robust throughout the first half of 2024 with limited opportunities across all building grades rendering it challenging for new occupiers to enter the market,” she said.

The city’s office workers will celebrate once more space becomes available.

“Most current occupiers are typically renewing leases unless they have a fundamental shift in space requirements and this in turn has carried over to strong rental growth.

“Despite this the market dynamics suggest that with the expected limited new supply over the next two to three years, the upward trend in rental growth is likely to persist, which will hopefully improve the financial prospects of new developments progressing to construction.”

Originally published as Gold Coast property: Commercial office space shortage the worst in Australia in July 2024