Steady as she goes for Gold Coast office market
The second half of 2019 saw a slight decrease in the amount of vacant office space on the Gold Coast, with demand for office space recovering from falls over recent periods.
The Property Council of Australia’s latest Office Market Report, released today, shows that over the final six months of 2019, Gold Coast office vacancy fell slightly from 12.9 to 12.8 per cent.
“Gold Coast’s vacancy rate has been largely stable over recent years, but a slight increase in office demand will be welcome news for the local industry,” Queensland Executive Director of the Property Council, Chris Mountford, said.
“A Grade office stock has been the most popular, with almost 2,000 sqm of net demand leading to a healthy fall in vacancy for prime space.
“Broadbeach and Bundall had the biggest falls in vacancy over the last half of 2019, while Southport and Surfers Paradise observed slight increases during this period.”
The Office Market Report has estimated that 9,404sqm of new office space will be come online on the Gold Coast in 2020.
“With an influx of additional office space expected, the market will be hoping for strong business growth in 2020 to ensure demand keeps pace with new supply,” Mr Mountford said.
“The office sector has been buoyed by a flurry of activity late in 2019, and so far this year. We’re looking forward to seeing whether the mid-2020 results reflect the momentum currently being felt across the city.”
Media contact: Chris Mountford | M 0408 469 734 | E [email protected]
Office Market Report January 2020
Analysis – Gold Coast market
Headline comments:
- Vacancy in the Gold Coast office sector marginally decreased over the six months to January 2020
- All grades of space have double digit vacancy
- Only the A Grade segment recoded positive demand
- All locales have double digit vacancy
- There is no space due to come online from 2021 onwards
Vacancy analysis:
- Vacancy marginally decreased from 12.9 percent to 12.8 percent over the six months to January 2020
By grade:
- A Grade – vacancy in this segment decreased from 14.4 percent to 12.8 percent due to net absorption of 1,994sqm
- B Grade – vacancy marginally increased from 10.7 percent to 11.0 percent
- C Grade – vacancy in this segment remained at 15.1 percent
- D Grade – vacancy increased from 11.0 percent to 17.2 percent due to -941sqm of net absorption
By locale:
- Broadbeach – vacancy decreased from 11.7 percent to 10.5 percent due to 371sqm of net absorption
- Bundall – vacancy decreased from 11.2 percent to 10.4 percent due to 755sqm of net absorption
- Robina-Varsity Lakes – vacancy marginally decreased from 13.2 percent to 13.0 percent
- Southport – vacancy increased from 15.1 percent to 15.6 percent due to -1,105sqm of net absorption
- Surfers Paradise – vacancy marginally increased from 10.5 percent to 10.8 percent due to -210sqm of net absorption
Future supply:
- There is 9,404sqm of space due to come online in 2020
- No projects due to be completed from 2021 onwards over the medium term
- A total of 8,727sqm of projects are mooted
Key market indicators, Gold Coast (aggregate)
|
Grade |
Vacancy, Jan 20 (%) |
Vacancy, Jul 19 (%) |
Net absorption, 6 months to Jan 20 (sqm) |
Net absorption, 12 months to Jan 20 (sqm) |
|
A |
12.8 |
14.4 |
1,994 |
-1,239 |
|
B |
11.0 |
10.7 |
-953 |
-410 |
|
C |
15.1 |
15.1 |
-10 |
-4,123 |
|
D |
17.2 |
11.0 |
-941 |
-988 |
|
Total |
12.8 |
12.9 |
90 |
-6,760 |
Key market indicators, Gold Coast (by locale)
|
Locale |
Vacancy, Jan 20 (%) |
Vacancy, Jul 19 (%) |
Net absorption, 6 months to Jan 20 (sqm) |
Net absorption, 12 months to Jan 20 (sqm) |
|
Broadbeach |
10.5 |
11.7 |
371 |
-188 |
|
Bundall |
10.4 |
11.2 |
755 |
-809 |
|
Robina-Varsity Lakes |
13.0 |
13.2 |
279 |
-1,326 |
|
Southport |
15.6 |
15.1 |
-1,105 |
-3,784 |
|
Surfers Paradise |
10.8 |
10.5 |
-210 |
-653 |