Small business owners in some of Noosa’s most popular commercial precincts are facing mounting financial pressure, with typical leases along Gympie Terrace and Noosa Junction costing roughly $100,000 a year.
Prices on Hastings Street are even higher, with leases likely reaching $150,000 for similar-sized spaces.
With such heavy overheads, the question for many is: how are small operators staying afloat?
The local business landscape is far from uniform, Noosa Chamber of Commerce & Industry president Ralph Rogers said.
“All businesses are facing an increase in operating costs, across premises, banking, utilities and labour hire. Not all are able to pass these increases on to consumers,” he said.
Rising lease rates are largely driven by constrained commercial supply.
“When there is negligible new development combined with population growth, supply and demand dictates prices will rise,” he said.
Some business owners are making strategic adjustments rather than closing their doors.
“Downsizing to reduce overhead and business complexity while increasing profitability isn’t a new trend,” he said.
“Certainly, there has been growth in health, as our population ages and as increased NDIS funding has created a new industry sector to manage that funding on behalf of recipients and provide services.”
Among the biggest pressures are rising electricity bills, merchant fees, marketing challenges and workforce turnover.
“Electricity costs have increased dramatically, and are a costly pain point,” Mr Rogers said.
“Merchant fees are a huge expense and the push to go cashless has seen many cafes, and others, pass those on, but that only works when you have a very low sale price point that isn’t impacted by a 1.5 per cent addition.”
Finding and keeping staff remains a persistent hurdle.
“A location that doesn’t have affordable accommodation tends to have a more transient workforce that can impact a business’s performance,” he said.
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The Chamber has not received lease-negotiation requests directly but is focusing on practical support.
“The Chamber has been offering educational sessions designed to increase efficiency and performance for small businesses,” Mr Rogers said.
“Most operators simply don’t have the structure and the time to step out of their business and invest in working on it, especially if they are short staffed to begin with.
“One area of cost we have been advocating on is rates – in Noosa a disproportionately small percentage pay the lion’s share of the rates income council collect.”
The Noosa Chamber of Commerce & Industry will host a landmark event on November 25 at Noosa Boathouse, exploring the opportunities the 2032 Olympic and Paralympic Games will bring to the region.
Speakers include the Hon. Andrew Powell MP, Minister for Tourism & Environment; Roz White, Chair of Sunshine Coast 2032; Mal Brough, Deputy Chair of Sunshine Coast 2032; Matt Stoeckel, CEO of Visit Sunshine Coast; and Olympian Larry Sengstock.
Register for the event online.
