Gold Coast office vacancy continues decline

The Property Council of Australia’s latest Office Market Report, released today, shows the office vacancy rate on the Gold Coast declined by 1.2 per cent over the last six months, dropping to 13.6 per cent.

Queensland Executive Director of the Property Council, Chris Mountford, said a combination of increased demand in 2015 and withdrawal of space from the market has maintained the Gold Coast’s declining office vacancy rate.

“All Gold Coast precincts, except for Southport, experienced positive demand across 2015. Surfers Paradise experienced the biggest fall in vacancy, dropping from 29.9 per cent to 22.6 per cent,” Mr Mountford said.

“Vacancy fell across all segments of the market, except for B-Grade office space which remained steady.”

“The vacancy rate is expected to continue to decline with only 7,592sqm of space due to come online in 2016, and no space in the pipeline for 2017 onwards.”

“Demand of Gold Coast office space is likely to continue to increase with the influx of infrastructure investment around the city and activity associated with the upcoming Commonwealth Games.”

“The Property Council’s first event of 2016, being held at The Sofitel on 3 March, will explore the impact that the Commonwealth Games and other major projects will have on the Gold Coast’s economic revival.”

 

Media contact: Chris Mountford |  M  0408 469 734 | E cmountford@propertycouncil.com.au

 

Analysis – GOLD COAST MARKET

Headline comments:

  • Vacancy in the Gold Coast office sector decreased over the six months to January 2016
  • This was due to positive demand and withdrawals
  • Only the B Grade segment recorded negative demand over the period
  • All locales recorded positive demand except Southport
  • There is no space due to come online in 2017

Vacancy analysis:

  • Vacancy decreased from 14.8 per cent to 13.6 per cent over the 6 months to January 2016
  • The vacancy decrease was due to 4,525sqm of net absorption and 1,200sqm of withdrawals

By grade:

  • A Grade – vacancy in this segment decreased from 17.4 per cent to 15.9 per cent due to 2,048sqm of net absorption
  • B Grade – vacancy remained steady at 14.1 per cent
  • C Grade – vacancy in this segment decreased from 13.4 per cent to 11.2 per cent due to net absorption of 2,953sqm
  • D Grade – vacancy decreased from 12.6 per cent to 9.6 per cent due to net absorption of 454sqm

By locale:

  • Broadbeach – vacancy decreased from 4.2 per cent to 3.7 per cent due to 152sqm of net absorption
  • Bundall – vacancy decreased from 17.2 per cent to 17.0 per cent due to 162sqm of net absorption
  • Robina-Varsity Lakes – vacancy decreased from 8.6 per cent to 6.9 per cent due to 2,275sqm of net absorption
  • Southport – vacancy increased from 14.0 per cent to 15.5 per cent due to -3,297sqm of net absorption. 1,200sqm of space was withdrawn over the period
  • Surfers Paradise – vacancy decreased from 29.9 per cent to 22.6 per cent due to net absorption of 5,233sqm

Future supply:

  • 7,592sqm of space is due to come online in 2016
  • There is no space in the pipeline for 2017 onwards
  • A total of 4,924sqm of projects are mooted

 

Key market indicators, Gold Coast (aggregate)