The six months to July 2017 has been a standout start to the year for the Gold Coast office market, resulting in positive take up of space coupled with withdrawal of stock flowing through to compression in total vacancy to 11.3%. This is the lowest rate recorded for the total Gold Coast market since July 2008. Broadbeach is the smallest of these markets and has shown improvement this period with just 2,617sqm vacant or a 8.7% vacancy rate. Robina/Varsity Lakes continues to offer consistent, low levels of available stock with vacancy recorded at 6.8% or represent just 9,271sqm. Bundall and Surfers Paradise continue their downward momentum, Bundall now 11.1%, boasting 4,606sqm of take up in the last year; white Surfers Paradise has shown outstanding improvement in the last few years reducing vacancies from 29.9% (July 2015) to just 15.1% aided this period by some withdrawal. Southport is the largest office market on the Coast and has shown some volatility in occupancy over the last couple of years, this period recording an increase in vacancy 14.0% or 20,729sqm. The impacts of the upcoming Commonwealth Games are uncertain for the office market, however with limited enquiry by short term tenants, we expect little disruption to the ongoing improvements over the next 12 months.
The Gold Coast office leasing market continues to show stable results. Enquiry levels have remained consistent with this time of year with a growing number of tenants seeking B grade space, encouragingly is the increase in occupiers seeking over 300sqm which was more difficult to move mid 2016, highlighting improved trading conditions and certainty in the market. Owners continue to see the value in improving premises particularly as occupiers strive to provide a better working environment for their staff, which has seen a distinct push towards assets with a clean and fresh décor and ample natural light. Interest in the southern end of the Gold Coast has continued this year with many professional services moving away from the previously popular Southport location.