Gold Coast City business hub CBDRobina has solidified its position as one of Australia’s leading core commercial precincts, with a vacancy rate of 4.6 per cent – the lowest in South East Queensland and less than any Australian capital city CBD, a new report reveals.
The research, compiled by leading property analyst Urbis, found CBDRobina’s office vacancy rate was continuing to decline, with the 4.6 per cent recorded in April well below the latest figures for Sydney, the lowest capital city CBD market, of 7.4 per cent in January.
The CBDRobina Office Market Update also revealed CBDRobina’s dropping vacancy rate was significantly lower than any other precinct in Gold Coast City, which posted an overall 15.2 per cent vacancy rate that was also trending downward.
CBDRobina has also attracted the attention of major commercial investors, with the sale of the Foxtel building, at 35 Robina Town Centre Drive, to Centuria Metropolitan for $46 million – the largest commercial deal in Gold Coast City since 2012 – announced last month.
Urbis valuation and advisory director, Ivan Hill, said CBDRobina was one of Australia’s best performing business hubs.
“CBDRobina is a standout performer, with its low vacancy, consistent net absorption and new supply activity making it unique Australia-wide,” he said.
The sought after CBDRobina market comprises 73,750sqm of commercial space across 21 commercial buildings, with just 3,361sqm of vacant space currently available.
Mr Hill said the net absorption rate in the Robina-Varsity Lakes sub-locale, of which CBDRobina accounts for 54.3 per cent of all commercial space, was the highest in Gold Coast City over the past two years.
“Consistently high net absorption rates over the past three years have driven the decreasing vacancy rate, with 3,642sqm of space leased in the Robina-Varsity Lakes area in the 12 months to January alone,” he said.
“The redevelopment of Robina Town Centre, expansion of Robina Hospital and Health Precinct, proximity to the M1 Motorway and rail infrastructure, which has the potential to be extended to Gold Coast Airport, have made it an attractive destination to develop, invest and occupy commercial space.
“It is underpinned by strong employment fundamentals, with NIEIR Employment Forecasts predicting employment growth of 73.6 per cent for Robina between 2011 and 2031, headlined by the business services, health and community sectors.
“High profile national and internationally recognised names, like GHD Global, Trilby Misso, Slater & Gordon, Shine Lawyers, WMS, Queensland Government and Bond University, are already operating from the centre.
“With high absorption figures and low vacancy rates demand remains strong and major corporations and investors are actively pursuing investment opportunities in CBDRobina as a result, with quality investments in the Gold Coast City market limited.”
Knight Frank joint managing director Mark Witheriff agreed major investment assets in CBDRobina were drawing strong demand.
“The recently announced sale of the Foxtel building for $46 million, reflecting a yield of 8 per cent, underscores the confidence in CBDRobina as a premium investment precinct,” he said.
“We have also just launched an offers to purchase campaign for The Rocket, the iconic 16-level tower considered Gold Coast City’s premier commercial address.
“We are expecting to receive national and international interest for The Rocket, with its high yield, the fundamentals underpinning the CBDRobina market and favourable lending conditions making it a prime investment opportunity.”
