Office market shows growth

BROADBEACH and Bundall have emerged as the most indemand office precincts on the Gold Coast in the past six months after both suburbs recorded reduced vacancy rates.

The latest Office Market Report released yesterday from the Property Council – a key barometer of the health of the Gold Coast economy – shows the overall vacancy rate stabilising, falling from 12.9 per cent to 12.8 per cent for the second half of last year.

It follows steady demand from business for A-grade space in particular where the vacancy rate fell from 14.4 per cent to 12.8 per cent.

In Broadbeach, vacant office space as a percentage of the total lettable area fell from 11.7 per cent to 10.5 per cent and from 11.2 per cent to 10.4 per cent in Bundall.

The vacancy rate increased from 11.6 per cent to 12.9 per cent for the first six months of last year after government departments vacated space and large companies downsized.

However, it wasn’t all good news with the vacancy rate climbing in Southport (up 0.5 per cent to 15.6 per cent) and Surfers Paradise (up 0.3 per cent to 10.8 per cent).

Property Council Queensland executive director Chris Mountford said the new figures are “welcome news” for the industry.

“A-grade office stock has been the most popular, with almost 2000sq m of net demand leading to a healthy fall in vacancy for prime space,” he said.

The report estimates 9404sqm of new office space will come to the market this year. That partly comes from a new building being constructed by Alder Constructions in Helensvale and 1500sq m of vacant space in the Acuity Business Park under construction in Robina.

“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.

Tania Moore, who is joint managing director of Knight Frank’s Gold Coast office, described the market as “subdued” for the six months to January. “The core business sector of the Gold Coast being SMEs, remained cautious, which resulted in a higher level of tenant holdovers or shortterm leases being reported, which supported the market remaining steady across most precincts.”

Ms Moore said there had been a positive start to the year with solid levels of activity across the market.

“We anticipate positive levels of take-up for the sixmonth reporting period through the first half of this year,” she said.