Strong demand for Sunshine Coast office space

The Sunshine Coast has recorded a significant drop in office market vacancy in what has been labelled a positive sign for the region’s economy.

The latest Property Council of Australia Office Market Report, released today, has found that vacancy rates on the Sunshine Coast fell from 21.9 percent in January 2019 to 16.7 percent in January 2020.

Healthy demand for local office space has driven the result, with over 10,000sqm of office space filled over 2019, explained Chris Mountford, Queensland Executive Director of the Property Council of Australia.

“After two years of increased office vacancy on the Sunshine Coast, it is extremely positive to see such a strong take up of office space over the course of 2019,” Mr Mountford said.

“Particularly in A Grade stock, we’ve recorded a very strong level of demand from Sunshine Coast tenants.

“With a significant amount of office space mooted to be delivered through the Maroochydore CBD project, the Property Council has been engaged with Council decision makers on how the future balance of the Sunshine Coast office market can best be managed,” concluded Mr Mountford.

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

 

Office Market Report January 2020

Analysis –Sunshine Coast market

Note – analysis is the year to January 2020

Headline comments:

  • Vacancy in the Sunshine Coast decreased in the 12 months to January 2020
  • The was due to positive demand
  • Demand was concentrated in the upper grades of space
  • No space is in the pipeline to be delivered over the medium term after 2020

 

Vacancy analysis:

  • Total vacancy decreased from 21.9 percent to 16.7 percent in the year to January 2020
  • This was due to 10,038sqm of net absorption
  • 765sqm of space was added over the period while 582sqm was withdrawn
  • Demand was concentrated in the upper grades of space

 

Future supply:

  • 6,345sqm of space is due to come online in 2020
  • There is no space in the pipeline to be delivered over the medium term after 2020

 

Key market indicators, Sunshine Coast (aggregate)

Grade

Vacancy,

Jan 20 (%)

Vacancy,

Jan 19 (%)

Net absorption, 12 months to Jan 20 (sqm)

A

22.5

33.9

9,379

B

12.3

13.8

1,170

C

9.0

8.7

-96

D

30.9

22.5

-415

Total

16.7

21.9

10,038