Golden Age: The winners and losers in the Gold Coast CBD war produce shock results

SOUTHPORT is the Gold Coast’s official central business district. But a new threat to its dominance has emerged which could have significant implications for business and development. TAKE OUR POLL

THE Gold Coast is embroiled in a CBD war with the traditional business base of Southport mounting a push for a new super office tower to fight off a challenge from Robina.

Research obtained by the Gold Coast Bulletin for the Golden Age series predicts the city in the future may not have a single central business district.

Offices will be spread between Southport, Robina, Bundall, Surfers Paradise and Broadbeach, where at present there are no plans for new commercial buildings.

The most likely scenario is new office space will be built on cheaper land with access to the Pacific Motorway, with Helensvale and Hope Island also emerging as new business players.

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Tania Moore, joint managing director, Knight Frank Gold Coast, at her Broadbeach office. Picture Glenn Hampson

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Knight Frank Australia Gold Coast joint managing director Tania Moore told the Gold Coast Bulletin:

“Each of the precincts has its own identity and drivers.

“I believe we will see further fragmentation of new office supply along the M1 as demand for new supply grows and land within the traditional office precincts tightens or its highest and best use is for residential product.

“The challenges for Southport will be the requirement to develop a new A grade quality building in order to attract new business and currently this is cost prohibitive.”

The latest research shows the following vacancy rates: Southport 13.2 per cent, Surfers Paradise 12 per cent, Bundall 11.8 per cent, Broadbeach 6.6 per cent, Robina/Varsity Lakes 7.2 per cent.

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Southport (AAP Image/Dave Hunt)

Ms Moore said it was usual for “conversations to start around new developments” once the overall market fell below 10 per cent vacancy.

“We anticipate any significant future supply will occur in the Robina area and other locations along the M1 corridor due to more affordable land prices,” Ms Moore said.

“It is unlikely we will see any new freehold office building constructed in the office precincts of Southport, Surfers Paradise, Bundall and Broadbeach for some time due to current land prices and rents not supporting the feasibility of a new development.”

Research by Knight Frank predicts beachside office locations like Surfers Paradise and Broadbeach will be hampered by high density development encouraged by town planning for residential and hotel use.

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Aerial view of Broadbeach.

Development in Southport remained small scale and was limited to refurbishment of offices.

The research noted that development was occurring outside the core precincts where land was more affordable and rents fell in line.

“Areas such as Hope Island and Helensvale have seen small-scale office development and this is likely to continue with greater density to emerge in nodes adjacent to public transport,” the report said.

Surfers Paradise. (AAP Image/Dave Hunt)

“The core Gold Coast precinct with the greatest potential to provide new office development in the short term is Robina, where a number of development sites remain available.”

But the report said the refurbishment of stock in locations like Southport and Bundall remained “essential”.

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Southport Chamber of Commerce president Laird Marshall agreed with the research and the need for the traditional CBD to get another major office tower.

“We need some commercial development with a large floor space where they don’t have partitions or beams,” Mr Marshall said.

“The newer buildings are specially built not to have enclaves or little rooms on each floor but large plate office space.

“We haven’t had that in Southport. It’s what large companies are looking for.”

Southport Chamber of Commerce president Laird Marshall.

Mr Marshall predicted developers of commercial office space would target the new Health and Knowledge precinct at Parklands.

“There are still some building sites in there. We will have some major development going in that region,” he said.

The light rail, with its link to heavy rail at Helensvale, gave Southport an advantage on some rival precincts as the M1 confronted gridlock.

While the Coast provided 30,626 workers to Brisbane every day, the core of employees in the CBD precincts had grown — up by 17 per cent in the five years to 2016 to 320,500.

“We have to look at light rail as a longer term process. Certainly so far it’s been a mixed bag. That transport availability may make a difference in the future,” Mr Marshall said.