Gold Coast office market tightens

The Property Council of Australia’s latest Office Market Report has revealed the Gold Coast office market remained remarkably resilient in the face of COVID-19.

Released today, the Office Market Report showed the Gold Coast’s overall office vacancy rate decrease from 14.3 per cent in January 2021 to 11.3 per cent in July 2021.

Jen Williams, Queensland Executive Director of the Property Council, said, “The figures show the Gold Coast market has fared comparatively better than many other cities, experiencing a significant vacancy decrease that is attributable both to positive demand and a small amount of withdrawals.”

“A decrease in Gold Coast office vacancy despite the ongoing challenges COVID-19 continues to present, is an indication of the positive sentiment in the Queensland market,” she said.

“Last quarter’s ANZ/Property Council Survey results showed an uptick in the property industry’s confidence, from 144 to 147 index points. This substantial decrease in office vacancy is yet another indication of the positive sentiment in the Queensland market.

“Given we are in the midst of a global pandemic, 12,413 square metres of net absorption in a market the size of the Gold Coast is staggering.

“The above historical average demand for small to medium enterprise office spaces in the Gold Coast markets are driving this positive market sentiment.

“Securing the rights to host the 2032 Olympics means that the SEQ region’s golden decade of opportunity has begun, and as a result, we can expect this interest in office space to continue. This is the Gold Coast’s chance to attract new businesses, which will bring along with them new talent and new investment in commercial assets.

“While current lockdowns and social distancing requirements present an issue in the immediate term, it is imperative that policy makers utilise the global opportunity the Olympics presents to focus on delivering the next round of transport infrastructure, urban renewal and CBD revitalisation the Gold Coast needs to thrive.”

Office vacancies are calculated on whether a lease is in place for office space, not whether the tenant’s employees are occupying the space or working from home.

ATTACHED: Gold Coast office market analysis

Media contact: Jen Williams|  M  0448 432 936 |   E  [email protected]

 

 

Office Market Report July 2021

Analysis – Gold Coast market

Headline comments:

  • Vacancy in the Gold Coast office sector decreased over the six months to July 2021
  • This was due to positive demand and withdrawals
  • All grades of space recorded positive demand
  • All grades of space, except for B Grade, have double digit vacancy
  • All locales recorded positive demand
  • There is some space due to come online over the next 6 months

Vacancy analysis:

  • Vacancy decreased from 14.3 percent to 11.3 percent over the six months to July 2021
  • The vacancy increase was due to 12,413sqm of net absorption and 2,100sqm of withdrawals

By grade:

  • A Grade – vacancy in this segment decreased from 18.6 percent to 11.4 percent due to net absorption of 5,813sqm
  • B Grade – vacancy decreased from 10.9 percent to 8.7 percent due to 3,242sqm of net absorption and 2,100sqm of withdrawals
  • C Grade – vacancy in this segment decreased from 17.9 percent to 15.8 percent due to net absorption of 2,663sqm
  • D Grade – vacancy decreased from 13.1 percent to 10.7 percent due to net absorption of 695sqm

By locale:

  • Broadbeach – vacancy decreased from 10.4 percent to 9.6 percent due to 246sqm of net absorption
  • Bundall – vacancy decreased from 8.5 percent to 7.2 percent due to 1,127sqm of net absorption
  • Robina-Varsity Lakes – vacancy decreased from 18.8 percent to 12.5 percent due to net absorption of 7,027sqm and withdrawals of 2,100sqm
  • Southport – vacancy decreased from 14.2 percent to 12.3 percent due net absorption of 2,787sqm
  • Surfers Paradise – vacancy increased from 14.3 percent to 12.5 percent due to net absorption of 1,226sqm

Future supply:

  • There is 3,627sqm of space in the pipeline for the second half of 2021
  • There is no other space in the pipeline after that
  • A total of 7,932sqm of projects are mooted

 

Key market indicators, Gold Coast (aggregate)

Grade

Vacancy,

Jul 21 (%)

Vacancy,

Jan 21 (%)

Net absorption, 6 months to

Jul 21 (sqm)

A

11.4

18.6

5,813

B

8.7

10.9

3,242

C

15.8

17.9

2,663

D

10.7

13.1

695

Total

11.3

14.3

12,413

 

 

Key market indicators, Gold Coast (by locale)

Locale

Vacancy,

Jul 21 (%)

Vacancy,

Jan 21 (%)

Net absorption, 6 months to

Jul 21 (sqm)

Broadbeach

9.6

10.4

246

Bundall

7.2

8.5

1,127

Robina-Varsity Lakes

12.5

18.8

7,027

Southport

12.3

14.2

2,787

Surfers Paradise

12.5

14.3

1,226