Gold Coast office vacancies down as small and medium businesses stayed resilient in face of Covid
While other parts of Australia saw an increase in “for lease” signs in the past six months – including the largest vacancy rise on record in the Melbourne CBD – new data has shown a very different picture on the Gold Coast. HERE’S WHY >>
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While other parts of Australia saw an increase in “for lease” signs in the past six months – including the largest vacancy rise on record in the Melbourne CBD – office vacancies on the Gold Coast tightened by three per cent.
The Property Council of Australia’s latest Office Market Report has revealed Australia’s aggregate vacancy rate for all office markets increased from 11.6 to 11.9 per cent for the six month period to July 2021, while the Gold Coast’s rate decreased from 14.3 per cent to 11.3 per cent.
The figures were recorded just prior to southeast Queensland’s current snap lockdown.
Jen Williams, Queensland executive director of the Property Council, said the substantial decrease in office vacancy was an indication of the positive sentiment in the Queensland market.
“The figures show the Gold Coast market has fared comparatively better than many other cities, experiencing a significant vacancy decrease that is attributable both to positive demand and a small amount of withdrawals,” she said.
“A decrease in Gold Coast office vacancy despite the ongoing challenges Covid-19 continues to present, is an indication of the positive sentiment in the Queensland market.
“Given we are in the midst of a global pandemic, 12,413 square metres of net absorption in a market the size of the Gold Coast is staggering.”
Ms Williams said the 2032 Olympics would underpin the historic demand in the coming years.
“Securing the rights to host the 2032 Olympics means that the SEQ region’s golden decade of opportunity has begun, and as a result, we can expect this interest in office space to continue,” she said.
“This is the Gold Coast’s chance to attract new businesses, which will bring along with them new talent and new investment in commercial assets.
“While current lockdowns and social distancing requirements present an issue in the immediate term, it is imperative that policy makers use the global opportunity the Olympics presents to focus on delivering the next round of transport infrastructure, urban renewal and CBD revitalisation the Gold Coast needs to thrive.”
CBRE senior director of office leasing Tania Moore said she too was optimistic about the sector in the medium and long term.
“Like most regional markets, the Gold Coast has been underpinned by the resilience of SME occupiers that have been back at work at full capacity for the past 12 months,” she said.
“This back-to-work response resulted in the early reactivation of business centres, supporting overall business confidence, which is reflected in the reduction in vacancy.
“Over the past six months, two sectors have performed strongly; demand in fitted, sub-200 sqm options driven by the SME sector, and the above-average transactional volume of 1000sqm-plus deals, which has predominantly occurred in the Robina precinct within fully-fitted and furnished call-centre-style spaces.”
Ms Moore said another 31,000 sqm was currently under construction and due for completion from early-2022 to mid-2023 in the city.
“Of this, 72 per cent is being delivered outside of the traditional office sub-markets and predominantly north of the Southport CBD, which will result in the continued suburbanisation of the Gold Coast office market,” she said.
“The new supply in the traditional office sub-markets, totalling 8620 sqm, is fully pre-committed.”
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