More than a dozen store fronts are sitting empty in one of the region’s business and hospitality hubs.
One real estate agent believed the reason was deeper than the current economic climate and said buildings within the precinct had reached their “end of life”.
There are ‘for lease’ signs outside at least 15 commercial properties within the Noosa Junction precinct.
This includes properties on Sunshine Beach Road, Lanyana Way, Arcadia Street and Noosa Drive, ranging from office tenancies to retail and hospitality spaces.
Some businesses have moved, including the popular Euro-Indian Pucca restaurant that has relocated to Noosaville’s Gympie Terrace.
Ray White Commercial currently has six properties listed for lease on its website, while Colliers has four listings.
Forde Property and Pure Property Management also have a handful between them.
Ray White Commercial property consultant David Brinkley told Sunshine Coast News that commercial vacancies were “above average” within Noosa Junction.
“We are at roughly a 10 per cent vacancy rate at the moment. You don’t like to see it,” Mr Brinkley said.
“During the Covid period we had it almost completely full because there was so much activity and people were visiting.
“Now we have seen a few tenants moving on. Some of the niche businesses have closed their doors due to a drop in foot traffic and interest rates have contributed a little bit.”
However, Mr Brinkley said the big battle for business owners and tenants was the age and condition of the existing buildings.
“They are reaching end of life,” he said.
“There hasn’t been a new building built there since about 1998.
“When you couple that with the drop in visitors and patronage, we’ve started to see ‘for lease’ signs coming up.”
He said some buildings had received a “facelift” over the years but building owners wanting to redevelop or refurbish had faced challenges with gaining council approval.
“We’ve had some owners who have been really trying to work hard to get a large redevelopment in the area off the ground,” he said.
“Noosa Junction Association as well as some of the landowners have been trying to get streetscaping off the bench.
“It really felt like there was some momentum there a couple of years ago, but it never seemed to get traction, which was unfortunate.”
In August, Noosa Council refused a development proposed on the corner of Noosa Drive and Bottlebrush Avenue.
The developer is set to appeal the decision in the Planning and Environment Court for the multi-storey building that would include units, an eatery and office spaces.
A controversial State Facilitated Development for 196 units on Lanyana Way has also received backlash from Noosa Council and the wider community.
Related story: ‘In the dark’: vow to scrap 195-unit proposal
But Mr Brinkley said higher-density developments would help local businesses thrive.
“You’d get more people (within Noosa Junction) using the local facilities, dining at the restaurants, shopping at the shops.
“There really needs to be a push to support some of these (developments) to make sure the area keeps going.
“I want to see the town thrive, the last thing we want to see is businesses close.”
Colliers senior executive of commercial sales and leasing Jesse Howitt disagreed that vacancy rates were above average but agreed development was the key to the precinct’s future.
“Despite economic pressures being placed on small businesses, property vacancy rates in the Junction are still relatively low,” Mr Howitt said.
“I think focus should remain on encouraging higher density residential development in the Junction to support those businesses and their future in the Junction.”
Noosa Junction Association’s Judi Lalor said while vacancies reflected a “challenging climate all round”, the area was still thriving.
“Noosa Junction’s diverse offer, particularly in entertainment, next-gen dining with something for everyone, and wellness, still delivers strong local and visitor appeal, but there is no doubt the business community is suffering across most sectors due to the cost-of-living crisis.
“Already sluggish results post-Covid have been heightened by further economic downturn, high interest rates, staff shortages due to lack of affordable housing in Noosa.
“For lease signs reflect the current environment however new business interest and opportunities are continuing.”
She also made reference to an ongoing issue regarding live music and the precinct’s nighttime economy as having an impact on some businesses.
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