Gold Coast Office Leasing Market Best Since GFC
The Gold Coast office leasing market has recorded its lowest vacancy rate since the Global Financial Crisis (GFC) following an impressive first half of 2017, says Ray White Commercial.
Ray White Commercial Gold Coast Office Leasing Specialist, Renee Hughes, said positive take up of office space, particularly on the southern Gold Coast, plus withdrawal of stock had helped reduce the total vacancy rate to 11.3 per cent.
“This is the lowest rate recorded for the total Gold Coast market since July, 2008,” Ms Hughes said in the Between the Lines – Gold Coast Office Market Small Suites Report, August 2017.
“Strong population growth has resulted in significant benefits to the residential market across the Gold Coast. Now increases in employment levels have further improved sentiment which has translated into greater business activity, all flowing onto improved office market indicators including lowered vacancies.”
Broadbeach recorded a vacancy rate of 8.7 per cent, Robina/Varsity Lakes 6.8 per cent and Bundall 11.1 per cent. Vacancies in Surfers Paradise have reduced from 29.9 per cent (July 2015) to just 15.1 per cent, while the largest market Southport bucked the trend with an increase in vacancy to 14.0 per cent.
Renee Hughes said the impact of the 2018 Gold Coast Commonwealth Games was uncertain for the office market, although she expects “little disruption to the ongoing improvements in the short term”.
Ray White Commercial Head of Research, Vanessa Rader, said office owners were continuing to see the value in improving premises particularly as occupiers strive to provide a better working environment for their staff.
“There has been a distinct push towards assets with a clean and fresh décor and ample natural light. Interest in the southern end of the Gold Coast has continued with any professional services moving away from the previously popular Southport location.”
Ms Rader said while there have been positive levels of enquiry, it hasn’t translated into increases in average rents, although there has been some downward movement in incentives, particularly in the B grade sector.