Gold Coast office vacancies head for 12 per cent as capital cities grapple with WFH exodus
As capital cities grapple with empty workplaces and deserted CBDs, a different story is unfolding on the Gold Coast where space is approaching record lows. Here’s why.
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GOLD Coast is defying a national trend away from commercial office space as working from home sees vacancies soar in capital cities.
As vacancies sit as high as 59 per cent in Melbourne, 41 per cent in Sydney and 37 per cent in Brisbane, Gold Coast office space has dropped to 13 per cent vacancy with some suburbs approaching a 12-year record low of seven per cent.
Data released by Colliers has found office leasing demand within the Gold Coast market had recovered at a faster pace compared to other larger office precincts nationally.
Colliers associate director of research Karina Salas said the report found the resilience of small and medium businesses had played a key role in the recovery, expecting to keep office vacancies below 13.5 per cent – and as low as 12 per cent – until the end of 2021.
“Our analysis of annual employment trends by industry has revealed that regional employment remained 1.5 per cent below pre-pandemic levels in February 2021,” she said.
“However, job opportunities within a number of sectors like the public administration, education and financial services have recovered and surpassed pre-Covid employment levels.”
Property Council data submitted by the Council of Capital City Lord Mayors to the national cabinet found while occupancy of capital cities had risen since the peak of the pandemic last year, the figures had plateaued.
The Mayors said three decades of infrastructure spending in capital cities was at risk, largely due to “the cumulative impact of changes to work patterns”.
Steven King of Colliers Gold Coast said it was a different story in regional centres.
“In line with the increase of take up activity, we forecast the market vacancy has reduced from 14.2 per cent in late 2020 to a range of 12-13 per cent by mid-2021, and with expectations that it will slightly surpass 13% towards the end of 2021,” he said.
“So far this year, market demand has varied across precincts, with Broadbeach, Robina-Varsity Lakes and Bundall precincts recording the strongest recovery, and even Bundall vacancy expected to fall below 7 per cent being the lowest vacancy seen on the precinct in about 12 years.
“Over the first half of 2021, one of the largest take up referred to the relocation and expansion of a telecommunications company from Broadbeach to Robina, taken up 4935 sqm of A grade space.
“This deal is an early indication that some businesses within the region are on expansion mode at least over the short-term.”
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