|THE Gold Coast office leasing market continued to show encouraging rental results, according to new research from Ray White Commercial.|
Renee Hughes, Ray White Commercial Gold Coast office leasing specialist, said the smallest of the the sub-markets, Broadbeach, has shown continual improvement while Bundall and Surfers Paradise yielded their best result in 10 years with vacancy of just 9.4 per cent and 11.3 per cent respectively.
Ms Hughes said after the Commonwealth Games there was an increased level of inquiry and activity which slowed again approaching the end of financial year.
“This picked up again after 1 July which is typical of the Gold Coast office leasing market, the greatest demand being in higher quality A and B grade space across all size ranges,” she said.
Demand was high from the professional services industries; with high enquiry and take-up from lawyers, accountants, financial advisers together with the Government sector.
After a prolonged period of steady rental rate results, the increase in demand levels have now translated into small annual growth of 3.99 per cent in average prime gross face rents.
Prime smaller stock currently ranges between $320 to $380/sq m gross averaging $365/ sqm while secondary in the more affordable $230 to $300/ sq m price range.
A grade assets with large floor plates in quality locations continue to dictate rents in excess of these rates up to $460/sq m on a gross basis.
The Surfers/Broadbeach and Bundall regions both offer the most affordable office product with average sale prices of $340,000 and $430,000 respectively.
Ray White head of commercial research Vanessa Rader said the Gold Coast strata office market had remained sought after during the first half of 2018 as demand has held after an active 2017 period.
“Underlying demand for quality, tenanted investments has ensured that volumes have held up over this period after recording a sub $9M last year (1H 2017). Investment into the strata office market for the first half of 2018 has represented $17.265M which is 101.81 per cent up on the 1H 2017 results,” she said.
The bulk of buyers have been private, local investors looking for alternative investment options at reasonable yields.
“Owner occupier activity has continued particularly for small businesses opting to own their own space in anticipation of business expansion as well as to shelter from rental growth which has been instrumental in price growth,” Ms Rader said.
Full report – click here
Ray White Commercial Gold Coast
Office Leasing Specialist
0418 846 275
Ray White Commercial
Head of Research
0432 652 115
02 9249 3724