Surfers Paradise power tower — 50 Cavill Ave — closes in on full house

A CORPORATE power tower on Cavill Ave has become so popular it is nearing full occupancy. Here’s what’s driving the demand.

The 22-floor office tower at 50 Cavill Ave, Surfers Paradise, is hitting new heights of occupancy since its new owners undertook a refurbishment.

THE Surfers Paradise corporate power tower at 50 Cavill Ave is nearing full occupancy following a $10 million upgrade by owner GDI Property Group.

Since GDI bought the 22-level tower for $48.75 million last year, its occupancy has gone up from 54 per cent to 90 per cent.

Works have included upgrades to common areas, six new lifts, energy-efficient airconditioning and building systems, high-speed fibre-optic internet, modern landscaping, and new showers, lockers and bike racks.

GDI managing director Steve Gillard said the property was the premier office building on the Gold Coast.

SUBSCRIBE TO THE GOLD COAST BULLETIN

“Mantra Group, CBRE, Regus, Maven Dental and Nine Gold Coast News are just a handful of businesses that call 50 Cavill Ave home,” he said.

Strong leasing rates at 50 Cavill were a key reason for the vacancy rate in Surfers Paradise dropping from 18.4 per cent to 15.1 per cent in the six months to July.

CBRE associate director Nick Selbie, who heads the leasing campaign for 50 Cavill, said the refurbishment had brought new tenants.

TOWERS TO SHAPE NEW TREND

“Once the message was delivered to market that long-overdue change was taking place in the building, we were inundated with inquiry, which led to 20 new leases being entered into and a number under negotiation at present,” Mr Selbie said.

“What is also pleasing, and a further vote of confidence, is the fact that many existing tenants have renewed and in most cases actually expanded.”

Mr Selbie said there was a lack of A-grade office space on the market.

“Tenants are happy to pay for it, provided the product reflects the commercial terms,” he said.

The top floor of the building, which has also been refurbished, has been released to the market.

FEARS OVER FRENCH SALE

Building of the tower was completed in 1991.

It was bought for $55 million by the Chung Group in 2004 before receivers were appointed to the Chung Group in 2012.

GDI picked up 50 Cavill for well below replacement cost.

Last year, GDI donated office space to the Perry Cross Spinal Research Foundation, allowing the charity to support staff and volunteers.

Founder Perry Cross will open the renovated building at a function this month.

SUBSCRIBE FOR LESS THAN 50c A DAY