Report tells tale of two beaches

THE latest Herron Todd White report on the Gold Coast commercial property sector provides an assessment of the contrasting fortunes of Main Beach and Palm Beach.

While the former area has seen a rising tide of vacancies since the onset of the Global Financial Crisis, a rush of new tenants has seen the rental market thrive in Palm Beach.

The report cites competition between the Coast’s retail precincts as a reason for volatile vacancy and rental rates.

“Palm Beach and Main Beach are markets where the rental market performance has been just as different as their demographic profiles,” the report states.

“Traditionally, the Main Beach retail precinct was home to numerous fashion boutiques, fine dining restaurants, cafes and bars in the early 2000s and rental rates were at a premium.”

However, since the GFC rental rates have fallen to 30 per cent below their peak.

“Palm Beach on the other hand has witnessed the inverse, particularly over the past five years,” the report says.

“Traditionally the Palm Beach commercial precinct was seen as a hodgepodge of retail and commercial development primarily servicing a fairly localised catchment.”

That has given way to a large number of boutique bars, restaurants and coffee shops opening in the wake of the suburb’s gentrification.

“This gentrification of the area has resulted in a critical mass of complementary uses and good trading conditions for retailers, albeit in a fairly competitive landscape,” the report says.