Gold Coast office vacancy rates continue to fall

The Property Council of Australia’s latest Office Market Report, released today, has revealed a continued decline in office vacancy rates on the Gold Coast.

Vacancy across the Gold Coast decreased from 12.2 percent to 11.3 percent over the six months to July 2017.

With below average office additions, and negligible change in demand over the period, the result is largely attributed to a number of withdrawals from the market for redevelopment.

Property Council Queensland Executive Director, Chris Mountford, says that so far in 2017 demand for office space has remained steady on the Gold Coast.

“Rather than increased demand, it was the withdrawal of properties such as the Lakehouse Corporate Space, Kaybank Plaza and Trust House for redevelopment or refurbishment over the last six months which has seen the vacancy rate fall,” Mr Mountford said.

“The greatest falls in vacancy were seen in A Grade office stock, with tenant interest clearly gravitating to quality spaces.”

Vacancy fell across all Gold Coast precincts, except for Southport which experienced a minor increase from 13.2% to 14% vacancy.

“Low vacancy is expected to continue on the Gold Coast, with very little office space expected to be developed over short to medium term,” Mr Mountford said.

For more information or to purchase the July 2017 Office Market Report, click here.

Media contact:  Chris Mountford  | E cmountford@propertycouncil.com.au

 

Office Market Report July 2017 Analysis – Gold Coast market

Headline comments:

  • Vacancy in the Gold Coast office sector decreased over the six months to July 2017
  • This was mainly due to withdrawals
  • All grades of space have double digit vacancy
  • All locales recorded vacancy decreases except Southport
  • There is no space due to come online from 2019 onwards

Vacancy analysis:

  • Vacancy decreased from 12.2 percent to 11.3 percent over the six months to July 2017
  • The vacancy decrease was due to 8,867sqm of withdrawals and 164sqm of net absorption
  • 4,548sqm of space was added over the period

By grade:

  • A Grade – vacancy in this segment decreased from 12.9 percent to 10.4 percent due to net absorption of 5,064sqm
  • B Grade – vacancy increased from 11.1 percent to 11.4 percent due to 2,489sqm of supply additions and -371sqm of net absorption
  • C Grade – vacancy in this segment decreased from 12.4 percent to 11.0 percent due to withdrawals of 6,800sqm. Net absorption was -4,123sqm
  • D Grade – vacancy increased from 17.0 percent to 19.7 percent due to -406sqm of net absorption

By locale:

  • Broadbeach – vacancy decreased from 10.8 percent to 8.7 percent due to 627sqm of net absorption
  • Bundall – vacancy decreased from 14.1 percent to 11.5 percent due to 2,236sqm of net absorption
  • Robina-Varsity Lakes – vacancy decreased slightly from 6.9 percent to 6.8 percent due to 5,400sqm of withdrawals
  • Southport – vacancy increased from 13.2 percent to 14.0 percent due to -1,787sqm of net absorption and 1,400sqm of supply additions
  • Surfers Paradise – vacancy decreased from 18.4 percent to 15.1 percent due to 1,400sqm of withdrawals and 1,153sqm of net absorption

Future supply:

  • No space is due to come online in the remainder of 2017
  • There is 5,576sqm of space in the pipeline for 2018
  • No projects are due to be completed from 2019 onwards
  • A total of 4,000sqm of projects are mooted