Record Low Office Vacancy Reflects Desire to be Based at the Heart of the City
Robina / Varsity Lakes has been highlighted as the most sought after business precinct in Gold Coast City, in Property Council of Australia’s latest Office Market Report.
A healthy demand to lease office space has underpinned the declining vacancy rate for the city as a whole. Gold Coast’s total volume of unoccupied office space fell by 2.1 per cent from 14.3 per cent to 12.2 per cent in the six months to January 2017. This represents the sixth year in a row of declining availability of Gold Coast office space available to lease.
Tania Moore, chair of the Property Council’s Gold Coast committee, said the tightening figures reflect rising demand and a dearth of new supply of commercial property for rent.
“We are reaching a historic trigger point, a less than 10 per cent vacancy rate, which traditionally has fuelled market growth,” she said.
“Industry sectors driving demand include government, education, finance and professional services firms.”
Ms Moore said that of the five major business precincts, centrally located Robina/Varsity Lakes has been the standout, recording a 6.9 per cent office vacancy rate, which was supported by strong leasing activity at The Rocket, with the recent 2,796sqm lease to Government agency NDIS.
The other Gold Coast commercial precincts recorded the following vacancy rates:
- Broadbeach 10.8%
- Bundall 14.1%
- Southport 13.2%; and
- Surfers Paradise at 18.4%.
With Robina leading the way, the Gold Coast recorded one of the sharpest declines in vacancy across all Australian office markets over the six-month reporting period. With no new supply being added in 2017 and continued strong tenant demand, the downward trend in vacancy is projected to continue.
Ms Moore said, “the Robina commercial office market has continued to be a stand out performer across the Gold Coast with the lowest vacancy of the five office precincts measured by the Property Council of Australia. The lack of available stock is seeing a continued uplift in rental rates being achieved which is translating to increasing property values. We anticipate this trend will continue throughout 2017 due to a lack of new supply”.
“Rental rates will continue to improve and incentives will tighten as the market swings in favour of Landlords and this will support the feasibility for future market growth.”
CBRE Associate Director, Nick Selbie said, “there has been limited supply over the past five years, which has resulted in the consistent decline in vacancy”.
“CBRE expects business confidence to remain positive over the next 12 months.”
Confidence in the commercial property market is at its highest point since 2010 according to the latest NAB Commercial Property Survey.
The survey predicts a bullish 12 months of growth in commercial property sentiment. It also predicts that office property will provide the best income returns in the next one to two years. On a national level, the survey found that vacancy rates in office and industrial markets will continue to fall in the next one to two years.
New Business Central: The Future of Gold Coast’s Commercial Heart
Leading Australian futurist and demographer Bernard Salt has identified Robina and Varsity Lakes as the principal population growth, infrastructure and employment hub for Gold Coast City’s future, based on demographic modelling and data projections to the year 2050.
While Gold Coast City’s population is expected to double to 1.2 million by 2050, Mr Salt says much of the phenomenal growth will concentrate around the geographic heart of the city – primarily the area centred on Robina/Varsity.
“When you take stock of the Gold Coast today, there are very few regions that can match Robina/Varsity’s capacity for growth and expansion -or its ability to provide diversity of housing and workspaces – with 50 hectares of approved developable land and a raft of key infrastructure and services already in place.
“This existing infrastructure will prove to be Robina/Varsity’s greatest asset, because future density requirements will effectively prohibit the development of new super regional shopping centres like Robina Town Centre, or universities on a similar scale to Bond – which is one of the fastest growing universities in Australia – forecast to grow by 225% by 2050. There will be no more. This is it.
“I am a believer in the Gold Coast. I am an optimist about the Gold Coast. Here is a place willed into existence by the Australian people and whose future growth is both assured and channelled by planning into an elongated urban form. With Robina in the middle. It doesn’t come any better for a locality.”
Gold Coast Office Space for Lease
Robina Professional Centre is a newly launched business address at the gateway to CBDRobina, just 250 metres walk to Robina Town Centre. Spaces are available from 152sqm to full floors.
- Click here to find out more about Commercial Space For Lease including space approved for Office, Medical, Education and other business uses.
Gold Coast Tenanted Commercial Property for Sale
69 Laver is a fully leased office building at the heart of Robina’s business precinct.
- Click here to find out more about Leased Commercial Investments for sale.