Demand for office space soars

INVESTMENT in the Gold Coast’s strata-office market has surged nearly 50 per cent in the past year, according to a new report.

The Ray White report shows investment in the Gold Coast strata-office market during 2017 was worth $49.665 million – 47.73 per cent higher than 2016.

Ray White Commercial head of research Vanessa Rader said more than 70 per cent of the sales value was in Robina-Varsity Lakes and Surfers Paradise-Broadbeach.

“Confidence remains high across the Gold Coast and the Games has given the city an injection of energy,” she said.

Investors seeking to take advantage of low interest rates have driven an uptick in capital values across the market.

However, Ms Rader said volatility remains in some of the region’s smaller markets.

Ray White Commercial Gold Coast office leasing specialist Renee Hughes said there was a lot of activity in Bundall and Southport markets, particularly for 200sq m to 300sq m suites.

Ms Hughes said there may be a lull in activity during the late March to April period due to the Commonwealth Games.

“Businesses have raised some concerns regarding access and transport with some tenants putting off relocations until these disruptions end,” she said.

While positive levels of inquiry has not translated into increases in average rents, incentives have shown some downward movement, particularly in the B-grade sector.

The Property Council of Australia’s latest office market report for the six months to December 31 shows the Gold Coast vacancy rate declined to 10.6 per cent.