Sunshine Coast office market continues to stagnate
The Sunshine Coast office market has experienced a modest reduction in vacancy over the past 12 months, but not as a result of increased demand, according to the Property Council of Australia’s January 2015 Office Market Report.
Withdrawals and limited new additions to the market have worked to balance out an overall reduction in demand, Chris Mountford, Queensland Executive Director of the Property Council of Australia says.
“Office vacancy on the Coast, which is measured annually, decreased 0.4 per cent to 11.9 per cent over the past 12 months,” Mr Mountford says.
“A grade office space experienced negative demand, with the drop in vacancy rate from 4.7 per cent to 3.8 per cent a direct result of withdrawals from the market.
“It is a slightly different story in the B grade segment, where the vacancy rate increased by 0.1 per cent to 19.1 per cent, but still achieved 1,769sq m of net absorption.
“As there is no supply due to come online in the next 12 months, a continued improvement in local economic conditions should contribute to a fall in the vacancy rate in the short term.
“However, over the medium to longer term, the development of the Maroochydore CBD has the potential to radically recast the local office market.
“It is vital that the Sunshine Coast Council engages closely with industry in the rollout of the CBD to ensure potential impacts on the region’s commercial and residential markets are appropriately managed.”
For further comment:
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Chris Mountford |
John Nguyen |
Attached: Further vacancy analysis
Analysis & commentary, Sunshine Coast, January 2015
Note – analysis is the year to January 15
Headline comments:
- Vacancy in the Sunshine Coast decreased in the 12 months to January 2015
- The was due to withdrawals
- Only the A Grade segment recorded negative demand over the period
- No space is in the pipeline until 2016
Vacancy analysis:
- Total vacancy decreased from 12.3 percent to 11.9 percent in the year to January 2015
- This was due to 5,531sqm of withdrawals
- 2,810sqm was added over the period and net absorption was -1,884sqm
- Only A Grade recorded negative demand
Future supply:
- There is no space in the pipeline for this market in 2015
- 16,000sqm of space is due to come online in 2016
- 12,386sqm is mooted
Key market indicators, Sunshine Coast (aggregate)
|
Grade |
Vacancy, Jan 15 (%) |
Vacancy, Jan 14 (%) |
Net absorption, 12 months to Jan 15 (sq m) |
Net absorption, 12 months to Jan 14 (sq m) |
|
A |
3.8 |
4.7 |
-4,111 |
1,776 |
|
B |
19.1 |
19.0 |
1,769 |
1,118 |
|
C |
17.3 |
18.9 |
411 |
-755 |
|
D |
4.7 |
7.8 |
47 |
46 |
|
Total |
11.9 |
12.3 |
-1,884 |
2,185 |
More information available at www.propertyoz.com.au/officemarketreport